Last Refreshed: 4/20/2024 1:47:18 AM
Press release

Ahold Delhaize successfully prices a multi-tranche EUR transaction, including Sustainability-Linked and Green tranches

Zaandam, the Netherlands, March 4, 2024 – Ahold Delhaize today announces that it has successfully priced a €1.6 billion multi-tranche EUR transaction. The three maturities include a €400 million 2-year FRN tranche, a €500 million 7-year Green tranche, and a €700 million 12-year Sustainability-Linked tranche.

The transaction marks another Ahold Delhaize bond issuance across sustainable formats, following its Sustainability Bond issuance in 2019, the €1bn Sustainability-Linked RCF launched in 2020 and refinanced to €1.5bn in 2022, the Sustainability-Linked Bond issuance in 2021 and the Green Bond issuance and Sustainability Linked Commercial Paper Program in 2023. All these ESG-labelled financings together reinforce the continued alignment of the company’s funding strategy to its sustainability strategy and overall ESG ambitions.

Green tranche

The Green bond proceeds will be applied to finance or refinance, in whole or in part, new or existing Eligible Green Projects, in accordance with the Green Finance Framework dated 6 March 2023.

The Green Finance Framework is structured in accordance with the International Capital Markets Association (ICMA) Green Bond Principles (2021) and Loan Market Association (LMA) Green Loan Principles (2023) to detail the quality of the Eligible Green Projects and the governance process around green finance.

The Green Finance Framework and the relative Second Party Opinion are available here.

Sustainability-Linked tranche

Ahold Delhaize has published an updated Sustainability-Linked Bond Framework (“the Framework”) structured in accordance with 2023 ICMA Sustainability-Linked Bond Principles. The Sustainability-linked tranche is linked to Ahold Delhaize achieving targets in 2030 on the following KPIs:

  • Reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions
  • Reduce absolute scope 3 FLAG and E&I (non-FLAG) GHG emissions
  • Reduce food waste

Our scope 1 and 2 targets are validated by SBTi. Our scope 3 FLAG and E&I (non-FLAG) targets are currently submitted, but pending validation by SBTi. The KPIs highlight our commitment to address climate change by reducing GHG emissions from our own operations and our value chain.

The Framework has been reviewed by the external ESG agency Sustainalytics, which has provided a positive Second Party Opinion. The Framework and the relative Second Party Opinion are available here.

Jan Ernst de Groot, Chief Sustainability Officer said: “With this new addition to our Bond Framework, we aim to further reinforce our commitment to sustainability as we consider ESG financing instruments a key contributor to support our efforts, especially regarding climate transition.”

Pricing of issuance

The 2-year tranche is priced at 3-month Euribor + 30 bps, the 7-year tranche is priced at 99.297 and carries an annual coupon of 3.375 per cent, and the 12-year tranche is priced at 99.651 and carries an annual coupon of 3.875 per cent. The notes will settle on March 11, 2024 and shall be listed on Euronext Dublin. BofA Securities and Goldman Sachs Bank Europe SE act as Global Coordinators, and BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, ING, J.P. Morgan, Rabobank, SMBC, Société Générale and Wells Fargo Securities, as Joint Bookrunners.

Last Refreshed: 4/20/2024 1:47:18 AM

Cautionary notice

This communication is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any (other) jurisdiction where any of such activities would constitute a violation of the relevant laws of such jurisdiction.

The offer of bonds referred to in this communication was limited in the EEA and the United Kingdom to qualified investors only. The bonds 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 bonds 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.

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as successfully, marks, ESG-labelled, continued, alignment, strategy, ambitions, in accordance with, quality, achieving, targets, 2030, reduc(e)/(ing), currently, commitment, aim, consider, key, will, shall or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statement reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

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