Greif Signs First Sustainable Finance Deal
Greif, a global leader in industrial packaging products and services, has completed its first sustainable finance transaction as part of its journey toward sustainability.
The pricing of the $1.8 billion Secured RCF and Term Loan A-1 was tied to Greif's sustainability performance, which was measured by its EcoVadis ESG score. This was part of the $2.4 billion financing package.
Greif worked with ING Capital LLC, its sustainability structuring agent, to add an innovative feature to the facility: the ability to switch to internally set Key Performance Indicators at a later date. This gives Greif more flexibility as it continues to meet its sustainability goals.
Ana Carolina Oliveira, ING America’s Head of Sustainable Finance, said:
"We see the sustainability-linked loan (SLL) as a great example of ‘The Greif Way’ in action. It is Greif’s commitment to sustainability values and standards directly connected to finance. What makes this SLL particularly special is the ability to switch the structure to customised sustainability targets later on. As Greif is continually pushing for greater sustainability performance, the structure allows the loans to evolve and track with that ambition.”
Greif's treasurer, Tony Krabill, said:
"We're glad that ING helped us get this innovative financing agreement. It shows that they have faith in our continued commitment to making our products and operations less harmful to the environment and contributing to a more circular economy." Earlier this year, we published our 13th consecutive annual sustainability report and will be announcing our new sustainability targets for 2030 in the near future.”
The EcoVadis ESG score looks at how well a company does in four areas: the environment, ethics, labour and human rights, and sustainable purchasing. EcoVadis has given Greif a Gold Rating since 2018. This means that Greif is in the top 4% of all companies evaluated around the world.
Greif also got a new MSCI ESG rating of AA. This rating is used to look at how a company handles financially important ESG risks and opportunities. This gives investors and customers an idea of how well the company will do in the long run. While AAA is the highest possible score, no companies in the container and packaging industry have it. Greif is in the top 25% of all companies in the world.