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FrieslandCampina takes out a new sustainable loan
FrieslandCampina has raised €300 million in loans, particularly on the German market. It concerns a 'Schuldschein', the interest of which is lower if a number of sustainable goals are achieved.
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These goals relate to the environment, social conditions and good governance (hence the term ESG: Environmental, Social, Governance). FrieslandCampina does not have to change course, because the goals are in line with the sustainability program Nourishing a better planet.
The transaction consists of three tranches that mature after three, five and seven years. The average term is just over five years.
Well oversubscribed
The €300 million offering is more than twice oversubscribed and has attracted German savings banks and international institutional investment banks. The proceeds from the Schuldschein issue will be used to refinance maturing debt.
CFO Hans Janssen: "We are pleased that investors have responded positively to our ESG-related Schuldschein. In addition to confidence in FrieslandCampina, this also shows the value of a well-founded sustainability program."
Performance objectives
Through the sustainability-linked mechanism, FrieslandCampina commits to performance objectives based on four key performance indicators (KPIs) in the areas of greenhouse gases, packaging and healthy food. FrieslandCampina receives a reduction in the interest margin for each year that it meets the KPIs.