Financial services provider Rand Merchant Bank (RMB) has partnered with retailer Pick n Pay on its inaugural sustainability-linked loan of R4.5-billion.
RMB, as the sole mandated lead arranger, bookrunner and sustainability coordinator for the syndicated debt facility, says it is encouraging to see the focus and commitment from industry leaders such as Pick n Pay on the two prominent global challenges of food security and greenhouse-gas emissions.
The sustainability-linked loan is a significant milestone for the retailer, as it aligns its financial strategy with its sustainability strategy.
Among Pick n Pay’s key performance indicators (KPIs) in terms of the debt facility is that of incorporating refrigeration conversion to natural refrigerants, which can significantly reduce the group’s Scope 1 emissions, and reducing food waste.
Pick n Pay chose to work with RMB as its sustainability coordinator to develop KPIs that are meaningful, it states, adding that Pick n Pay has a long-standing relationship with RMB.
The funding package will be used to advance Pick n Pay’s Ekuseni plan, which drives growth and sustainability goals.
The retailer aims to reduce carbon emissions to net zero by 2050 and reduce store food waste by 50% by 2030.
It also aims to make all PnP-branded packaging recyclable or reusable by 2025 and reduce its energy and water use by 45% and 20%, respectively, by 2030 and 2025.