Ahold Delhaize said Monday that it has successfully priced a 500-million-euro ($527 million) sustainability-linked bond, continuing the Dutch grocer’s efforts to link its financial operations with its environmental, social and governance commitments.
The eight-year bond is connected with Ahold Delhaize’s plans to reduce the amount of food waste and Scope 1, 2 and 3 greenhouse gas emissions it generates over the next few years. The company has said it intends by 2030 to cut Scope 1 and 2 emissions by half compared with a 2018 baseline and also halve food waste compared with its 2016 baseline.
The bond’s maturation date — when the company will need to repay the amount it is borrowing — is March 10, 2033.
The financing instrument is the third sustainability-linked bond Ahold Delhaize has issued. The company, which runs U.S. grocery banners including Hannaford, The Giant Company and Food Lion, also issued sustainability-linked bonds in 2021 and 2024. Those bonds brought the company 600 million euros and 700 million euros, respectively.
According to Ahold Delhaize’s sustainability-linked bond framework, the company is focusing on objectives including improving energy efficiency; lessening its dependence on fossil fuels for transportation and heating; and transitioning to renewable energy and low-emitting refrigerants.
Ahold Delhaize has also turned to green bonds to help finance its operations. Unlike funds from sustainability-linked bonds, which companies can use to support their general operations, green bonds are intended specifically to finance projects related to the environment.
The company priced its first green bond, which brought it 500 million euros, in 2023. Ahold Delhaize plans to put the proceeds from that bond toward green building projects, energy efficiency, clean transportation and pollution control.
