sugar beet

Royal Cosun successfully issues a EUR 60m ESG-linked EUPP and a EUR 145m ESG-linked Schuldschein

January 12, 2023

Royal Cosun, a leading international agricultural cooperative, has successfully placed EUR 60m and EUR 145m in ESG-Linked Senior Unsecured Fixed & Floating Rate Loans with the support of BNP Paribas, Rabobank and Raiffeisen Bank International as joint arrangers. The ESG-linked loans were issued in three, five, seven and ten-year tranches, with proceeds used for general corporate purposes and refinancing of existing debt. As Cosun’s coordinator, BNP Paribas structured the sustainability adjustment feature, with a coupon step-up / step-down mechanism based on the number of ESG-related key performance indicators that are met:

  1. Reduce the company’s direct carbon emissions
  2. Increase the share of revenue from health promoting ingredients or products and green alternative products
  3. Increase the number of business lines with the EcoVadis Gold or Platinum Label

Despite the volatile backdrop with high-rate volatility, the appetite for green financing remains strong which allowed Cosun to attract interest from different investors across Europe, US and Asia.

The issuance of both ESG-linked instruments fit with Cosun’s mission to unlock the full potential of plants and to convert them into valuable innovations for a more sustainable world. Royal Cosun sets ambitious targets for reduction of direct emissions and invests in the generation of renewable energy within the framework of its growth strategy Unlock 25. The Cosun Solar Park was recently officially opened  with a seven-hectare solar meadow, now generating 9.2 million kWh of renewable energy to supply the speciality factories of its subsidiary, the Cosun Beet Company.