In what is believed to be the first transaction of its kind for a poultry company in Australia, Ingham’s Group (Inghams, Company) is pleased to announce that it has completed a transaction to convert its entire $545 million of debt facilities into a Sustainability Linked Loan (SLL).
In announcing the Company’s inaugural Sustainability Linked Loan, Inghams’ CEO and Managing Director, 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.”
The SLL is governed by Inghams’ Sustainable Finance Framework, which expands Inghams’ capability to deliver our commitment of ‘Always Good’ by linking the cost of borrowing to performance against a defined set of previously published 2030 sustainability performance targets. The SLL incorporates three key sustainability performance targets, which incentivise greenhouse gas (GHG) emissions intensity, water intensity and landfill intensity reductions.
Commenting on the establishment of the SLL, Inghams Chief Financial Officer, Gary Mallett, said: “The targets that have been selected for the Sustainable Linked Loan ensure strong alignment with our Sustainability strategy.”
Inghams appointed ANZ as Sustainability Coordinator to assist with the transaction, including structuring a Sustainable Finance Framework to enable the Company’s borrowings to be designated as a SLL. Commenting on the transaction, David Simmons, Executive Director Sustainable Finance at ANZ, said: “The sustainability performance targets within this loan help incentivise Inghams on a pathway towards reducing greenhouse gas emissions, water use and waste.
“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 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 issued by the Asia Pacific Loan Market Association, Loan Market Association and the Loan Syndications and Trading Association. Ashurst provided legal services to the transaction.
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