Royal FrieslandCampina N.V. have signed an agreement with ING Bank N.V. for a new EUR 300 million sustainability-linked loan that refinances part of its current short-term liabilities. The new loan has a maximum maturity of three years, carries a variable interest rate based on EURIBOR, and an interest rate discount if ambitious sustainability performance targets are met.
Through the sustainability-linked mechanism, FrieslandCampina commits to ambitious performance targets under three sustainability Key Performance Indicators (“KPIs”) which include: a reduction of greenhouse gas emissions in its worldwide production and transport network, a decrease of greenhouse gas emissions on the dairy farms of its member farmers and increasing traceability to source key raw materials such as palm oil, soy, pulp & paper and cocoa. FrieslandCampina will have an interest rate margin reduction for each year it meets the sustainability KPIs, with an independent auditor providing validation.
FrieslandCampina is committed to being carbon neutral by 2050, supporting the Paris Climate Agreement. The greenhouse gas emission reduction KPIs provide a seamless fit with this to work towards the company’s interim 2030 targets. With these KPIs and the agreement with ING, FrieslandCampina also furthers its contribution to the United Nations Sustainable Development Goals 12, 13 and 17 in line with its renewed sustainability programme Nourishing a better planet.
Said Robert ter Borg, Corporate Director Finance and Reporting FrieslandCampina: “Sustainability is a priority at FrieslandCampina and we are constantly seeking improvements in our sustainability performance. We believe that incorporating sustainability metrics into every aspect of our business, from daily operations to corporate financing, is key to creating value for our stakeholders. We are delighted to partner with ING on our first ever sustainability-linked loan.”
Added Kiran Sanchit, ING’s Head of Food & Agri EMEA: “I’m proud that ING is providing FrieslandCampina with a sustainability-linked loan that is related to the company’s sustainability targets. As one of the frontrunners in the sector, FrieslandCampina has not shied away from taking up its responsibility in the ESG challenges the dairy sector faces today and are foreseen for the future. By taking ownership and making itself accountable, FrieslandCampina not only shows commitment to address these challenges, but it also paves the way for other companies to follow. ING is very committed in supporting companies that deal with ESG risks and steer towards a lower environmental impact and this loan is a great example of that.” For more visit FrieslandCampina.com