For the first time in Switzerland, second time in Europe, the interest rate will be coupled with the company’s sustainability performance and rating
Barry Callebaut factory in Extrema MG, Brazil, 2010. (Photopress/AP Photo/Nelson Antoine)
Barry Callebaut, a leading manufacturer of high-quality chocolate and cocoa products, successfully amended and extended its revolving credit facility. For the first time in Switzerland, the applicable credit margin is linked to the sustainability performance of Barry Callebaut, reported by Sustainalytics. The most recent Sustainalytics performance of Barry Callebaut increased from 67 to 72. ING is the Sustainability Coordinator of the facility, as part of a syndicate of 13 banks.
Victor Balli, CFO of Barry Callebaut, said: "I am pleased to be able to increase and extend our revolving credit facility with our core banks, which is proof of our excellent long-standing relationship. Following the announcement of our ambitious sustainability strategy "Forever Chocolate" last November, I am proud that we are one of the pioneers in the green loan area. Linking the interest rate to our sustainability performance makes perfect business sense for us and the financial industry".
Léon Wijnands, Global Head ING Sustainability: "ING supports clients who are a step ahead in sustainability. We congratulate Barry Callebaut with this financing, which underpins the sustainability ambitions of "Forever Chocolate".
In November 2016 Barry Callebaut launched its new sustainability strategy "Forever Chocolate", targeting 100% sustainable chocolate by 2025. In order to make sustainable chocolate the norm, "Forever Chocolate" includes four targets that the company expects to achieve by 2025 and that address the biggest sustainability challenges in the chocolate supply chain: child labor, farmer poverty, its carbon and forest footprint and sustainable sourcing.
The credit facility amount increased from €600 million to €750 million, further strengthening the Group's liquidity profile. The tenor is extended by three years to 2022, perfectly matching with the Group's maturity profile.