Ahold Delhaize has revealed the closing of its €1.5 billion (USD $1.6 billion) sustainability-linked revolving credit facility.
The new facility raises the total revolving commitments from €1.0 billion (USD $1.1 billion), reduces Ahold Delhaize’s borrowing costs, and extends the maturity date to December 2027, which may be further extended in accordance with two 12-month extension options.
The facility linksthe cost of borrowing to Ahold Delhaize’s annual performance on sustainability key performance indicators (KPIs) aligned with its Grounded in Goodness strategy, which focuses on healthier people and a healthier planet. Specifically, the facility includes three sustainability KPIs to lower Ahold Delhaize’s carbon emissions within its own operations (scope 1 and 2), lower food waste, and help customers make healthier choices. The facility also provides the opportunity to add scope 3 carbon emission reduction performance targets by 2025. The company will report progress on its performance targets in its annual reports.
ABN AMRO Bank N.V. and Société Générale acted as coordinators and sustainability coordinators on the facility.
Last month, Ahold Delhaize revised its interim CO2 emissions reduction target for its entire value chain (scope 3) to at least 37% by 2030, with the aim of becoming net-zero by 2050. The company intends to decarbonize its entire value chain and ensure that all of its climate targets are in accordance with the United Nations’ goal of keeping global warming below 1.5°C.
Ahold Delhaize has also maintained its position as a leader in the Food and Staples Retailing sector in the 2022 Dow Jones Sustainability World Index (DJSI World). The company earned a score of 76 out of 100, well above the industry average of 37 points. With this score, Ahold Delhaize remains No. 1 in the industry in the United States and No. 3 in Europe.
Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize that operates more than 2,000 stores across 23 states under the Food Lion, Giant Food, The Giant Co., Hannaford, and Stop & Shop brands, as well as e-grocer FreshDirect, is No. 10 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in the United States.