HOFER KG which manages the international activities of the ALDI SOUTH Group outside of Germany, has signed a more than one billion euros revolving credit facility (RCF) that is linked to specific sustainability targets of the company. The RCF has a term of five years and includes two extension options of one year each.
„During the last few years, we have noticed an increased interest in sustainability coming from the financial markets. At the same time, banks have provided us with a very positive feedback on our international CR strategy. Therefore, linking the financing to certain sustainability goals was included already at an early stage in the discussions with our bank partners. We are convinced that we can support and promote the strong commitment to being a reliable and sustainable retailer also through our financial strategy.”
Roland Steinwender, Managing Director International Finance & Administration
The credit facility is - for the first time - linked to sustainability goals of the ALDI SOUTH Group, which have a positive or negative impact on the credit margin, depending on whether the targets are achieved. The three targets reflect the three international focus areas of zero carbon, resource efficiency and human rights, with which ALDI SOUTH aims to achieve its Vision 2030: Making sustainability affordable for its customers.
Specifically, the agreed targets include the following three points:
For many years, the Group has successfully integrated sustainability into the business. The new International CR Strategy focuses on the most pressing global challenges. The ten-year strategy includes a total of six key areas: respecting human rights, increasing resource efficiency, reducing all emissions, positioning the company as an attractive employer, giving all customers access to healthy products, and supporting local communities. Eleven long-term goals have been defined, such as increasing supply chain transparency, expanding human rights programs, and reducing greenhouse gas emissions. ALDI SOUTH aims to enable its customers to consume consciously and sustainably while staying true to its discount value proposition.
“We have already come a long way towards achieving our sustainability goals in recent years, but that is not enough. It is always our ambition to take a best-in-class approach. Tying our sustainability goals with our finance strategy is an important step to integrate our Corporate Responsibility agenda into crucial corporate functions. This is how we succeed in making sustainability an integral part of our business and value chain.”
Anke Ehlers, Managing Director International Corporate Responsibility.
The new revolving credit facility is provided by a consortium of international banks, with HSBC acting as the documentation agent and sustainability coordinator.
