Ahold Delhaize’s first Green Bond was priced effectively.
Ahold Delhaize revealed today that a €500 million green bond with a 5-year term and an April 4, 2028 maturity date was effectively priced.
The deal is Ahold Delhaize’s first green bond issuance and comes after the company issued sustainability bonds in 2019, a €1 billion sustainability-linked RCF in 2020, and sustainability-linked bonds in 2021. The company’s funding strategy continues to be in line with its sustainability strategy and general ESG goals thanks to all of these ESG-labeled financings.
How to use bond money
The proceeds from the bonds will be used to refinance or fund new or existing environmentally friendly assets at Ahold Delhaize that have a quantifiable positive effect on the environment in the following categories:
Green Construction
Alternative Energy
Energy Savings
Transport That Is Clean
Pollution Control and Prevention
Updated Green Finance Framework To describe the calibre of the Eligible Green Projects and the governance process surrounding green finance, Ahold Delhaize has published an updated Green Finance Framework (the “Framework”) structured in accordance with the International Capital Markets Association (ICMA) Green Bond Principles (2021) and Loan Market Association (LMA) Green Loan Principles (2023). The external ESG agency Sustainalytics evaluated the Framework and offered a favourable Second-Party Opinion.
The Green Finance Framework and the relative Second Party Opinion are accessible here.
reiterating a promise
“We’re excited to announce the issuance of the first Green Bond and fourth ESG financing instrument for the company,” said Jan Ernst de Groot, chief sustainability officer. This deal demonstrates Ahold Delhaize’s commitment to tackling sustainability issues and organising its teams to work towards generating sustainable value for all of its partners. This action helps us advance the transition to sustainable food systems and supports our updated climate plans, which we revealed last year.
Cost of issuing
The issue has a price of 99.851 percent and a 3.500 percent yearly coupon. On April 4, 2023, the notes will settle and be published on Euronext Amsterdam. Co-ordinators for green structuring included ING and BofA Securities. Joint bookrunners included BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, ING, and Wells Fargo Securities.
