Retailers

Ahold Delhaize Secures New Credit Line Linked to Sustainability Goals

$1.2B revolver aligned with 'Healthy & Sustainable' ambitions
Photograph courtesy of Ahold Delhaize

Ahold Delhaize said it has secured a new revolving credit facility linked to its sustainability goals, including food waste reduction, carbon reduction and promotion of healthier eating.

The Dutch company called the new 1 billion euro credit line (about $1.2 billion U.S.) an important milestone that highlights how the global retailer is reinforcing the alignment of its funding strategy and its commitments laid out in its Healthy & Sustainable ambition.

Ahold Delhaize last year issued what it called the retail industry’s first Sustainability Bond, with the money raised earmarked to finance new or existing environmentally friendly projects, including a rooftop farm project and procurement of sustainably produced products such as coffee, tea, cocoa and seafood.

The revolving credit facility draws a connection between the company’s cost of borrowing and the achievement of the following objectives:

  1. Food waste reduction: As measured by percentage reduction in tons of food waste per million Euro food sales and supporting the United Nations’ Sustainable Development Goals 12.3.
  2. Carbon emission reduction: As measured by percentage reduction of Scope 1 and Scope 2 CO2-equivalent emissions and aligned with Ahold Delhaize SBTi (science-based targets)-certified 2030 targets.
  3. Promotion of healthier eating: As measured by percentage of own brand food sales from healthy products.

“This is an important facility for Ahold Delhaize that ensures we maintain our financial flexibility. After having issued the first euro-denominated sustainability bond in the retail industry in June 2019, we believe that linking this facility with our significant Healthy & Sustainable ambition will deliver a positive outcome for all stakeholders.”

The new facility has a maturity of three years with two one-year extension options. The facility also includes a mechanism allowing the company to anticipate the discontinuation of the U.S. dollar interbank benchmark interest rate. A syndicate of 16 relationship banks participate in the facility.

ABN AMRO and Societe Generale acted as coordinators and sustainability coordinators on the facility.

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