As part of its wider sustainability strategy, Shoprite Group has received, through partnership, a R1.5bn loan facility from RMB.
The loan facility consists of a R700m green loan (a first for the retail sector) and a R800m sustainability-linked loan, structured in accordance with Loan Market Association (LMA) green and sustainability-linked loan principles respectively.
The proceeds of the green loan will be used to advance key initiatives such as renewable energy, cardboard and plastic recycling, sustainable packaging, and improved energy efficiency.
“As part of its contribution to mitigating climate change, the Shoprite Group has identified key programs such as energy efficiency and renewable energy, which will have an impact across its value chain.” “RMB is proud to partner with the Group through innovative finance products linked to improved sustainability and environmental performance,” says Phil Norton, RMB’s Transactor for Sustainable Finance and ESG Advisory.
“With these loans, we can continue to reduce our environmental footprint by using more renewable energy and sustainable packaging, as well as recycling more waste.” These environmental programs are critical to our fight against climate change, and with these loans, we can accelerate and intensify our efforts,” says Sanjeev Raghubir, Group Sustainability Manager.
The Group’s track record has provided funders with verifiable evidence of the nature and scale of its sustainability projects and ambitions, allowing the retailer to access preferential funding costs.