Ahold Delhaize announced yesterday that it successfully issued its first Sustainability Bond, amounting to €600 million with a term of 6 years, maturing on June 26, 2025. The transaction, which makes Ahold Delhaize the first retailer to issue a euro-denominated Sustainability Bond, highlights the company’s commitment to accelerate the transition to sustainable food systems.
The bond’s proceeds will be used to finance Ahold Delhaize’s new or existing environmentally friendly projects and community initiatives in three categories: procurement of sustainably produced products; reduction of climate impact; and promotion of healthier eating. These projects support the company’s “healthy and sustainable” growth driver as part of its Leading Together strategy.
Ahold Delhaize has published a Sustainability Bond Framework to detail the quality of the projects to be financed through the issuance of these types of bonds. Sustainalytics, an independent provider of environmental, social and governance research and ratings, prepared a second-party opinion on the credentials and management of the first bond. The allocation of the proceeds will be overseen by the Ahold Delhaize Sustainability Bond Committee and will be reported.
Frans Muller, Chief Executive Officer, said: “The issuance of our first Sustainability Bond is a vital step in creating and sharing sustainable value for all stakeholders. It not only can have a positive environmental and social impact, it also helps us accelerate our promise to help our customers and communities eat well, save time and live better.“
The issuance is priced at 99.272 per cent and carries an annual coupon of 0.250 per cent. The notes will settle on June 26, 2019, and shall be listed on Euronext Amsterdam. J.P. Morgan acted as Sustainability Bond Structuring agent and BNP Paribas, BofA Merrill Lynch, ING, J.P. Morgan and Rabobank acted as joint bookrunners.
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The offer of notes referred to in this communication was limited to qualified investors only. The notes have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and will also not be registered with any authority competent with respect to securities in any state or other jurisdiction of the United States of America. The notes may not be offered or sold in the United States of America without either registration of the securities or an exemption from registration under the US Securities Act being applicable.
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