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DKSH Management Ltd.
/ Key word(s): Bond/Sustainability
DKSH Closes Second Sustainability-Linked Loan With Existing CHF 150 Million Revolving Credit Facility
05.10.2023 / 07:00 CET/CEST
DKSH has converted its existing CHF 150 million revolving credit facility loan into a sustainability-linked revolving credit facility. This is the second sustainable finance instrument DKSH has entered into within this year, further strengthening its commitment to increase gender diversity in its senior leadership team positions, and become climate neutral (Scope 1+2) by 2030.
Zurich, Switzerland, October 5, 2023 – DKSH, a leading Market Expansion Services provider and trusted partner for companies looking to grow in Asia and beyond, has converted an existing CHF 150 million revolving credit facility (RCF) into a sustainability-linked RCF. The conversion of this loan was signed by a syndicate of six banks, with the Australia and New Zealand Banking Group Limited (ANZ) acting as the Sustainability Coordinator.
This sustainability-linked RCF is linked to its social and environmental commitments – to increase gender diversity in its senior leadership team positions, and to become climate neutral (Scope 1+2) by 2030. Achieving the agreed-upon targets would result in lower borrowing rates for DKSH, whereas failure to reach the targets would equally entail higher borrowing rates.
The sustainability-linked RCF includes an accordion feature which provides flexibility to increase the size of the RCF by up to CHF 150 million through existing lenders, or through the additional facility commitments by any existing lender, and/or the introduction of new lenders.
Earlier in May this year, DKSH signed a sustainability-linked loan for CHF 315 million, linked to the same key performance indicators.
Ido Wallach, DKSH CFO, stated: “This second sustainability-linked facility demonstrates how sustainability has become a true way of life in DKSH, and the confidence of our banking partners in supporting it.”
Emily Tonkin, ANZ Head of Sustainable Finance, Europe, UK said: “We are pleased to have supported DKSH in converting their loan into a sustainability-linked facility, as part of their commitment to become climate neutral by 2030 and increasing gender diversity in its leadership.”
“More broadly, we are seeing significant appetite for sustainability-linked facilities as they allow borrowers to communicate their sustainability strategy to the market, be publicly held accountable and be incentivized to achieve their targets,” said Ms. Tonkin.
About DKSH
DKSH’s purpose is to enrich people’s lives. For more than 150 years, we have been delivering growth for companies in Asia and beyond across our Business Units Healthcare, Consumer Goods, Performance Materials, and Technology. As a leading Market Expansion Services provider, we offer sourcing, market insights, marketing and sales, eCommerce, distribution and logistics as well as after-sales services. DKSH is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. Listed on the SIX Swiss Exchange, DKSH operates in 37 markets with 32,600 specialists, generating net sales of CHF 11.3 billion in 2022.
About ANZ
ANZ’s Sustainable Finance business is recognized as a market leader across Australia, New Zealand and Asia Pacific, and has participated in 127 sustainable finance deals with a total deal size of AUD 155 billion in FY22. ANZ is the largest bank servicing institutional and large corporate customers in its home markets of Australia and New Zealand, where it ranks #1 for overall market-and lead-bank penetration (according to Peter Lee Associates). In Asia, ANZ has ranked #1 for relationship quality for the past 6 years, and #1 for relationship quality in Singapore in 2022, according to Greenwich Associates.
For more information please contact:
DKSH Holding Ltd.
Till Leisner
Head, Group Investor & Media Relations
Phone
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