Tesco launches £400m sustainability bond

Tesco has announced the launch of its second sustainability bond, which is set to be worth £400 million. 

The news comes in the run-up to COP26, which will see leaders gather from across the world to discuss the climate crisis.  

The supermarket claimed that the move showed its commitment to reducing its greenhouse gas emissions by 60 per cent by 2025.  

Tesco’s bond is said to have a coupon of 1.875 per cent and a seven-year maturity. 

It follows the grocer’s first sustainability bond in January this year, alongside the establishment of a £2.5 billion revolving credit facility in October 2020.  

READ MORE: EXCLUSIVE: Tesco Whoosh still offline after £15m hack

The bond will reportedly be aligned with the retailer’s Sustainability-Bond Framework, which adheres to the ICMA Sustainability-Linked Bond principles.   

“I am delighted that we have issued our second sustainability-linked bond,” Tesco chief financial officer Imran Nawaz said. 

“We are proud to be making good progress on our journey to be net zero in our operations by 2035. 

“By linking our financial strategy to this target, this further cements our ambition.” 

In other news, Tesco has recently launched a recycling initiative with Faerch, which will see the supermarket recycle storage trays and containers to be used in food product packaging. 

The move will “improve circularity” and “make … packaging as sustainable as possible”, according to sustainable packaging manager William Guest. 

The scheme is estimated to recycle 2000 tonnes of plastic each year. 

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