Ahold Delhaize Secures New Credit Line Linked to Sustainability Goals

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:

“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.