Allens has advised Coles on the refinancing of $1.3 billion of its existing commitments into sustainability-linked loan (SLL) facilities with its existing bilateral lenders.
Allens has recently assisted a number of corporate clients with SLLs, and has been at the forefront of structuring SLLs to fit within broader financing platforms and strategies.
The margin adjustments in Coles' SLL draw a direct line between the food, liquor and convenience retailer's sustainability performance and its cost of capital. And it incentivises Coles to accelerate its sustainability goals – as it has an ambition to be Australia's most sustainable supermarket.
Coles' SLLs are connected to three sustainability targets, drawn from Coles' sustainability strategy, the reduction of Scope 1 and Scope 2 CO2e emissions, the increase of total waste diverted from landfill and the percentage increase of women in leadership roles.
'It has been a pleasure to work with Coles as it set the sustainability targets for its SLLs and to support its ambition to be Australia's most sustainable supermarket," said lead Partner James Darcy.
'We are certainly seeing increased demand for sustainability-linked financing, from both corporate borrowers and lenders, as they look to deliver on key sustainability objectives.'
