Ingham’s links sustainability to $545M loan

Grain Central July 1, 2024


Ingham’s is a major user of feedgrain, and operates processing facilities in every state of Australia as well as in New Zealand. Photo: Ingham’s

INGHAM’S Group has completed a transaction to convert its entire $545 million of debt facilities into a Sustainability Linked Loan (SLL).

It is believed to be the first transaction of its kind for a poultry company in Australia, and has come from Australia and New Zealand’s largest vertically integrated poultry operation.

In announcing the development, Ingham’s chief executive officer and managing director Andrew Reeves said the move has affirmed the company’s leadership position in the Australasian poultry industry in terms of sustainability.

The SLL is governed by the company’s Sustainable Finance Framework, which expands its capability to link the cost of borrowing to performance against a defined set of previously published 2030 sustainability performance targets.

These are tied to reductions in greenhouse-gas emissions, water use, and landfill.

“The targets that have been selected for the Sustainable Linked Loan ensure strong alignment with our sustainability strategy,” Ingham’s chief financial officer Gary Mallett said.

The SLL took effect on May 28, and runs to November 2027 at the latest.

Ingham’s appointed ANZ as sustainability coordinator to assist with the transaction, including structuring a sustainable finance framework.

ANZ executive director sustainable finance David Simmons said the sustainability performance targets within the loan will help incentivise Ingham’s on its path to reducing greenhouse gas emissions, water use, and waste.

“The deal is an encouraging step for the broader poultry sector and one which we hope will inspire others in the industry along a similar pathway,” Mr Simmons said.

Source: Ingham’s


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