Food Manufacturing, News, Sustainability

Inghams converts debt into Sustainability Linked Loan

Ingham’s Group has announced that it has completed a transaction to convert its entire $545 million of debt facilities into a Sustainability Linked Loan (SLL).

The move is believed to be the first transaction of its kind for a poultry company in Australia.

Inghams’ CEO and managing director, Andrew Reeves, announced the company’s inaugural Sustainability Linked Loan.

“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,” said Reeves.

The SLL is governed by Inghams’ Sustainable Finance Framework, which expands Inghams’ capability to deliver its commitment of ‘Always Good.’

The SLL incorporates three key sustainability performance targets, which incentivise greenhouse gas (GHG) emissions intensity, water intensity, and landfill intensity reductions.

Inghams has also appointed ANZ as sustainability coordinator to assist with the transaction.

Executive director sustainable finance at ANZ, David Simmons, said the deal is an encouraging step for the poultry sector.

“The sustainability performance targets within this loan help incentivise Inghams on a pathway towards reducing greenhouse gas emissions, water use, and waste,” said Simmons.

“The transaction also acted as a catalyst for discussions on developing and finalising Inghams’ Sustainable Finance Framework. The deal is an encouraging step for the broader poultry sector and one which we hope will inspire others in the industry along a similar pathway.”

EY were also engaged as part of the process and have provided a Limited Assurance Statement covering the Framework and SLL transaction’s alignment with the 2023 Sustainability Linked Loan Principles.

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