Adventure and travel apparel supplier Kathmandu (ASX:KMD)
has landed a deal with NAB and ANZ to secure a sustainability objective-based loan worth $100 million.
Under the loan structure, the outdoor gear manufacturer’s sustainability performance determines the borrowing expenses. This means the loan’s pricing will reduce, as Kathmandu hits its sustainable development targets.
Kathmandu’s CFO Chris Kinraid responded to the deal, “Sustainability is in our DNA and is a core foundation of the Group, linking our financial arrangements to our sustainability goals made perfect sense.”
The $1 billion dollar company recognises the lending condition as an attractive incentive to accelerate the company’s pursuit of sustainability goals including environmental protection and eco-friendliness, B Corp recognition, and ethical supply practices.
Kathmandu said, “It reinforces to our shareholders and stakeholders that we are committed to sustainability across all aspects of our Group”.
Kathmandu also secured an additional $200 million loan free of sustainability commitments.
Shares in Kathmandu (ASX:KMD)
are trading 1.7 per cent higher at $1.47