Henkel is further expanding its commitment to sustainable finance. The company has now defined a framework within which sustainable bonds can be placed in the future.
Sustainable Finance Framework
With this “Sustainable Finance Framework” Henkel creates a direct link between its sustainability strategy and its funding strategy. The framework enables the issuance of two types of bonds: sustainability-linked bonds and green bonds. For sustainability-linked bonds, financing costs are linked to the achievement of sustainability targets, while the proceeds from the issuance of green bonds are used for sustainable investments. The framework was reviewed by the independent ESG rating agency ISS ESG, which confirmed the environmental added value and the compliance of the framework with the Green Bond and Sustainability-Linked Bond Principles of the International Capital Market Association (ICMA).
Acting in conformity with applicable regulations; adherence to laws, rules, regulations and in-house or corporate codes of conduct.
Financial Glossary SchließenPlastic waste reduction bond
Henkel takes another step in combining attractive corporate financing instruments with progress in sustainability: As the first company globally, Henkel concluded a plastic waste reduction bond. The proceeds from this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenditures related to Henkel’s activities to reduce plastic waste. The bond consists of two tranches and has a total volume of 70 million US dollars and 25 million euro and a maturity of five years.
The plastic waste reduction bond underlines Henkel’s commitment to foster a circular economy and reduce plastic waste and hence to Sustainable Finance. At the same time, it provides the opportunity for additional learnings from financial products which include sustainability features. In 2018, Henkel was the first company in Germany to conclude a syndicated ‘Sustainability linked Loan’, a credit facility linked to Henkel’s performance in three independent sustainability ratings.
Example projects
The total issuance volume of above 88 million euros equivalent has been spent by 31 December 2023 on specific projects and activities to reduce plastic waste
Aggregate of all loan services available on call from one or several banks as cover for an immediate credit requirement.
Financial Glossary Schließen
Additional Information
Sustainability Report 2023
