In a landmark move for Australia’s poultry industry, Ingham’s Group has converted its entire $545 million debt facilities into a Sustainability Linked Loan (SLL). Ingham’s says the loan links the cost of borrowing against existing sustainability targets.
The loan is governed by Ingham’s Sustainable Finance Framework and involves three key sustainability areas: greenhouse gas (GHG) emissions intensity, water intensity, and landfill intensity. Ingham’s said that by linking borrowing costs to the performance targets for these three areas incentivises actions to reduce their intensity.
The mechanism ensures that the company’s financial and environmental performance are closely aligned, driving continuous improvement in sustainability practices, it sai.
Inghams’ CEO and MD, Andrew Reeves, said, “This groundbreaking transaction reaffirms our sustainability leadership position within the Australasian poultry industry, and demonstrates our ongoing commitment to achieving our ambitious environmental goals, which will directly benefit our key stakeholders.”
ANZ was the sustainability coordinator that structured Ingham’s framework and designation of its borrowings as an SLL.
EY provided Limited Assurance Statement covering the Framework and the SLL transaction’s alignment with the 2023 SLL principles, and Ashurst provided legal services.
