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HomeFinancePolish Żabka secures 75 million euro 'sustainability-linked' EBRD loan

Polish Żabka secures 75 million euro ‘sustainability-linked’ EBRD loan

On Wednesday (5 July), the European Bank for Reconstruction and Development (EBRD) announced a 75 million euro (of which 67.5 million euros is in Polish złoty equivalent) “sustainability-linked” loan for a Poland-based convenience store company, Żabka Group.

The loan will provide financial support to Żabka Group’s medium-term capital expenditure program in Poland, which includes investments eligible under the EBRD’s Green Economy Transition (GET) approach. The loan will finance the adoption of sustainable solutions in Żabka’s operations, such as a new automated distribution centre, more efficient and lower-emission stores and food waste minimisation operations.

Within the loan, there is a concessional tranche of 7.5 million euros provided through the High-Impact Partnership on Climate Action (HIPCA) which is tied to specific environmental, social, and governance (ESG) targets, such as cutting carbon emissions. The tranche is backed by Austria, Canada, Finland, Korea, the Netherlands, Switzerland, Spain, and the United Kingdom.

“Our goal is to responsibly plan the development of the entire Żabka Group. Together with other market players, we set new standards for financing by developing innovative solutions that take into account sustainability goals. All signed agreements on sustainable finance instruments contain our commitments to specific measurable objectives in the ESG area, which are consistent with the Group’s Responsibility Strategy. The loan granted to us by the EBRD is an additional motivation for us to implement our activities in the scope of increasing energy efficiency and minimising food waste in our operations more effectively,” said Marta Wrochna-Łastowska, Żabka’s Chief Financial Officer and Management Board Member.

The global food system is responsible for around a third of all global greenhouse gas emissions. Implementing environment-friendly solutions, including at the retailer level, is critical to meet the global 2015 Paris Agreement objectives, the EBRD said.

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