FrieslandCampina refinances revolving credit facility
Royal FrieslandCampina N.V. successfully raised a new 1.25 billion euros revolving credit facility (“RCF”). The new RCF has a five-year tenor (plus two 364-day extension options) and will replace the existing 1 billion euros revolving credit facility, which was due to mature in October 2024. The facility is linked to four important sustainability Key Performance Indicators (“KPI’s”) fully in line with FrieslandCampina's existing climate, sustainability, and nutritional targets.
The RCF features a sustainability-linked pricing component, with a pricing adjustment based on annual performance targets of four KPI’s. The first two KPI’s focus on the reduction of Green House Gas emissions for scopes 1, 2 and 3 as validated by SBTi (for more information: FrieslandCampina's climate plan). The other two KPI’s focus more specifically on making packaging recyclable, and improving the nutritional value of FrieslandCampina’s products in compliance with the FrieslandCampina Global Nutritional Standards. With this new RCF, FrieslandCampina further links its sustainability objectives to its financing activities.
Hans Janssen, CFO Royal FrieslandCampina N.V.: “Despite challenging conditions in the credit markets, we have been able to refinance our revolving credit facility at favorable conditions. The new revolving credit facility was facilitated in close partnership with leading international banks. The new facility provides a solid base for further execution of our sustainability ambitions in the areas of climate and packaging, as well as in improving the nutritional value of our products.”
The upsize of the credit facility supports the increased working capital needs. The successful refinancing confirms the lenders’ positive assessment of both FrieslandCampina’s balance sheet, its underlying business, and its commitment to its sustainability objectives.
The transaction was completed with the support of ING Bank and MUFG Bank (Europe), both acting as Coordinators, and HSBC acting as Sustainability Coordinator. Besides these three banks the following ten banks participate in the RCF: ABN Amro, BNP Paribas, Citibank, Intesa Sanpaolo, JPMorgan, Rabobank (Facility Agent), UniCredit, Standard Chartered, Agricultural Bank of China, and ICBC.