By Adriano Marchese
Koninklijke Ahold Delhaize NV said Thursday that it has priced its inaugural sustainability-linked bond amounting to 600 million euros ($715.7 million).
The Dutch grocer said the green bond has a term of nine years, maturing in mid-March, 2030, paying an annual coupon of 0.375%.
The company said the proceeds will be used for refinancing debt maturities and general corporate purposes.
However, the bond is linked to achieving certain sustainability performance targets by 2025, namely a reduction of scope one and two CO2e emissions by 29% from a 2018 baseline, and a reduction of food waste by 32% from a 2016 baseline.
Should it not meet those targets, the coupon will be adjusted.
"Sustainability-linked bonds represent the next phase of our ESG financing, where we bring our long-term commitments to tackle our carbon footprint and food waste directly to our investors," Chief Financial Officer Natalie Knight said.
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(END) Dow Jones Newswires