FrieslandCampina has successfully issued a 300 million euros promissory note linked to Environmental, Social and Governance (ESG) goals. The transaction consists of three tranches which will mature after 3, 5 and 7 years. The average maturity of the transaction is slightly over five years.

The offer with a value of 300 million euros was more than twice oversubscribed and attracted German savings banks and international institutional investors banks. Proceeds from the Schuldschein issue will be used to refinance maturing debts.

Hans Janssen, Chief Financial Officer Royal FrieslandCampina N.V.: “We are pleased that investors have responded positively to our ESG-related Schuldschein. Besides confidence in FrieslandCampina, this also shows the value of a robust sustainability programme. Proceeds from this issue provide a solid financial base.”

ESG-linked
Through the sustainability-linked mechanism, FrieslandCampina commits to ESG -related performance targets based on four key performance indicators (“KPIs”). These KPIs consist of targets on reduction of Scope 1, 2 and 3 greenhouse gas emissions, packaging and healthy food. FrieslandCampina receives a reduction in interest margin for every year it meets sustainability KPIs, which are validated by an independent auditor. The targets are in line with FrieslandCampina’s sustainability programme Nourishing a better planet.

Parties involved
FrieslandCampina launched and priced its Schuldschein with the support of BNP Paribas, HSBC, UniCredit and ABN AMRO in cooperation with Bayerische Landesbank.