Scandi Standard refinances 450 million euro financing with sustainability-linked loan
Scandi Standard has secured an agreement with its four relationship banks to refinance existing bank financing through a new sustainability-linked bank loan amounting to approximately EUR 450 million. The loan has a five-year tenor.
Scandi Standard, a leading producer of chicken products, has reached an agreement with its syndicate of banks on the main terms for refinancing its existing bank financing. The new facility will be a sustainability-linked loan valued at approximately EUR 450 million, with a five-year term.
The purpose of this refinancing is to replace the group's current bank financing and ensure a robust, flexible, and long-term funding structure that aligns with Scandi Standard's ambitions for both organic and strategic growth. The agreement is conditional upon the finalization of binding facility agreements.
This new bank loan includes a revolving credit facility of approximately EUR 100 million for working capital needs. Sustainability-linked loans are increasingly common, tying financial terms to the company's performance on environmental, social, and governance (ESG) targets. This structure can incentivize companies to meet specific ESG goals.
Scandi Standard operates primarily in the Nordic region and Ireland, focusing on the production and sale of chilled and frozen chicken. The company has stated ambitions to improve its sustainability performance, which the new loan structure may help support by linking financial costs to ESG achievements.