Kathmandu (ASX:KMD) ties sustainable development with borrowing activity

Company News

by Michael Luu

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

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.