Synlait Milk will reap cheaper interest costs if it hits various environmental, social and governance in a $50 million, four-year loan with ANZ Bank. However, if it falls short, that bill will be higher.
The loan will effectively transfer ANZ’s existing $50m committed four-year revolver loan with Synlait into an ESG linked loan and a discount or premium to the base lending margin will be applied, based on its performance around a score of measures. Synlait and ANZ declined to specify details around the discount or premium, citing commercial sensitivity.
To find out more, please read on the NZ Herald website.