Ahold Delhaize has announced that it has successfully issued its first sustainability bond, amounting to €600m with a term of six years.
The transaction, which makes Ahold Delhaize the first retailer to issue a euro-denominated sustainability bond, "highlights the company's commitment to accelerate the transition to sustainable food systems," the group said.
The bond's proceeds will be used to finance Ahold Delhaize's new or existing environmentally friendly projects and community initiatives in three categories: procurement of sustainably produced products; reduction of climate impact; and promotion of healthier eating.
According to the retailer, these projects support the company's "healthy and sustainable" growth driver as part of its Leading Together strategy.
"The issuance of our first sustainability bond is a vital step in creating and sharing sustainable value for all stakeholders," said Frans Muller, chief executive officer. "It not only can have a positive environmental and social impact, it also helps us accelerate our promise to help our customers and communities eat well, save time and live better."
Earlier this week, German conglomerate BayWa announced it had successfully issued its first so-called 'green bond', a US$500m investment vehicle targeting the development of wind and solar energy projects.