Scandi Standard Agrees Refinancing of Bank Loans Tied to Sustainability Goals
Poultry company Scandi Standard has reached an agreement with its four relationship banks to refinance existing bank financing. The new five-year loan will be linked to the company's sustainability targets.
Poultry producer Scandi Standard has finalized terms with its syndicate of banks for a refinancing of its existing bank facilities. The agreement covers a new sustainability-linked bank loan amounting to approximately EUR 450 million, with a tenor of five years. The loan is contingent on the execution of a binding facilities agreement.
The refinancing aims to replace the group's current bank financing and secure a robust, flexible, and long-term funding structure aligned with Scandi Standard's ambitions for organic and strategic growth. This move is expected to enhance the company's financial flexibility and support its future strategic initiatives, potentially including mergers and acquisitions or other expansion efforts.
The new five-year loan structure provides financial stability for the company's forward planning. By linking the loan to specific sustainability metrics, Scandi Standard signals a commitment to integrating Environmental, Social, and Governance (ESG) principles into its core business operations.
This financial arrangement is designed to encourage the company's progress towards its stated sustainability objectives. The successful implementation of the loan is pending the finalization of formal agreements with the involved banking partners.