Release details

2019-06-19 18:00 CEST
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Ahold Delhaize issues its first Sustainability Bond

Zaandam, the Netherlands, June 19, 2019 - Ahold Delhaize today announced that it successfully issued its first Sustainability Bond, amounting to €600 million with a term of 6 years, maturing on June 26, 2025. The transaction, which makes Ahold Delhaize the first retailer to issue a euro-denominated Sustainability Bond, highlights the company's commitment to accelerate the transition to sustainable food systems.

The bond's proceeds will be used to finance Ahold Delhaize's new or existing environmentally friendly projects and community initiatives in three categories: procurement of sustainably produced products; reduction of climate impact; and promotion of healthier eating. These projects support the company's "healthy and sustainable" growth driver as part of its Leading Together strategy.

Ahold Delhaize has published a Sustainability Bond Framework to detail the quality of the projects to be financed through the issuance of these types of bonds. Sustainalytics, an independent provider of environmental, social and governance research and ratings, prepared a second-party opinion on the credentials and management of the first bond, which is available on Ahold Delhaize's website. The allocation of the proceeds will be overseen by the Ahold Delhaize Sustainability Bond Committee and will be reported.

Frans Muller, Chief Executive Officer, said: "The issuance of our first Sustainability Bond is a vital step in creating and sharing sustainable value for all stakeholders. It not only can have a positive environmental and social impact, it also helps us accelerate our promise to help our customers and communities eat well, save time and live better."

The issuance is priced at 99.272 per cent and carries an annual coupon of 0.250 per cent. The notes will settle on June 26, 2019, and shall be listed on Euronext Amsterdam. J.P. Morgan acted as Sustainability Bond Structuring agent and BNP Paribas, BofA Merrill Lynch, ING, J.P. Morgan and Rabobank acted as joint bookrunners.

Cautionary notice

This communication is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any (other) jurisdiction where any of such activities would constitute a violation of the relevant laws of such jurisdiction.

The offer of notes referred to in this communication was limited to qualified investors only. The notes have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") and will also not be registered with any authority competent with respect to securities in any state or other jurisdiction of the United States of America. The notes may not be offered or sold in the United States of America without either registration of the securities or an exemption from registration under the US Securities Act being applicable.

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as to be, will, shall or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the "Company, or "Ahold Delhaize") to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to the risk factors set forth in the Company's public filings and other disclosures. Forward-looking statements reflect the current views of the Company's management and assumptions based on information currently available to the Company's management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

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