The new revolving credit facility has a five-year tenor with two 364-day extension options.
The facility is linked to four sustainability key performance indicators (KPIs) that align with FrieslandCampina's existing climate, sustainability and nutritional goals.
Hans Janssen, CFO of Royal FrieslandCampina N.V., said, "Despite challenging conditions in the credit markets, we have been able to refinance our revolving credit facility at favourable 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."
ING Bank and MUFG Bank (Europe) supported FrieslandCampina in completing the transaction as coordinators, while HSBC acted as sustainability coordinator.
Other banks that participated in the revolving credit facility include ABN Amro, BNP Paribas, Citibank, Intesa Sanpaolo, JPMorgan, Rabobank (Facility Agent), UniCredit, Standard Chartered, Agricultural Bank of China, and ICBC.
Revolving Credit Facility
The new facility features a sustainability-linked pricing component, with a pricing adjustment based on annual performance targets of the four KPIs.
The first two KPIs focus on the reduction of greenhouse gas emissions for scopes 1, 2 and 3 as defined by SBTi.
The second set focuses on making packaging recyclable and improving the nutritional value of FrieslandCampina’s products.
The upsizing of the credit facility supports the dairy giant's increased working capital requirements.
The refinancing confirms the lenders’ positive assessment of FrieslandCampina’s balance sheet, the underlying business and commitment to sustainability objectives, FrieslandCampina added.