Pioneering New Zealand-based nutritional milk producer Synlait has entered into the country’s first Environmental, Social and Governance (ESG) linked loan, with innovative law firm MinterEllisonRuddWatts advising Synlait on the finance arrangements.
The four year $50 million Environmental, Social and Governance (ESG) linked loan with ANZ, encourages Synlait (as the borrower) to further improve its reporting performance against a set of independent ESG criteria.
Banking and Finance Partner, Kate Lane led the law firm’s team advising on this first of its kind arrangement.
“With this market first, Synlait is building on its sustainable business practices and making a strong commitment to deliver greater transparency between its financial arrangements and performance against ESG measures,” says Kate Lane.
“We were delighted to advise Synlait on this project which so aligns with our own values.”
The loan effectively transfers ANZ’s existing $50 million committed four-year revolver loan into an ESG Linked Loan, with a discount or premium to pricing based on Synlait’s performance against Sustainalytics’ ESG Risk Ratings – an assessment of a company’s exposure to financially material ESG risks.
New Zealand’s first ESG-linked loan aims to highlight that ESG initiatives can also deliver significant financial benefits.
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