February 13, 2020
Edenred ties social and environmental criteria to one of its financing instruments for the first time
Edenred has announced that it has renegotiated its syndicated credit facility, increasing it from €700 million to €750 million, extending its maturity from July 2023 to February 2025 – with extension options to February 2027 – and improving the financial conditions. Edenred notably decided to introduce environmental and social performance criteria into the calculation of the financing costs.
For the first time in its history, Edenred has decided to index the financial conditions attached to one of its financing instruments to environmental and social performance indicators, taken from the quantitative sustainable development targets set by the Group for 2022 and 2030.
The two non-financial criteria to be introduced into the calculation of the syndicated credit facility’s financing costs relate to:
- promoting healthy and sustainable eating habits – Edenred aims to reach by 2030 an 85% nutrition awareness rate among merchants and employees using its solutions (versus 30% in 2018);
- combating global warming – Edenred is targeting a 52% cut in greenhouse gas emissions intensity1 by 2030 compared with 2013 (26% reduction in 2018).
The Group’s sustainable development policy has three focus areas:
- Ideal People: improve quality of life
- Ideal Planet: preserve the environment
- Ideal Progress: create value responsibly
Patrick Bataillard, Edenred’s Executive Vice President, Finance, said: “The operation’s success is indicative of the quality of Edenred’s credit2. As well as strengthening the Group’s liquidity under improved conditions, the new agreement is perfectly in line with our strategy of generating sustainable and profitable growth.”
The transaction was arranged by Crédit Agricole CIB acting as Sole Coordinator and Sustainability Coordinator.
Edenred is the everyday companion for people at work. Its leading intermediation platform connects 50 million employees and 2 million partner merchants via 830,000 corporate clients, across 46 countries. Thanks to its global technology assets, the Group managed 2.5 billion specific purpose payment transactions in 2018, primarily carried out via mobile applications, online platforms and cards, and representing nearly €30 billion in business volume.
Edenred’s 10,000 staff are driven by a commitment to improving employees’ quality of life, increasing companies’ efficiency and boosting merchants’ revenues. They achieve this through three business lines:
- Employee Benefits (food, meals, well-being, leisure, culture and human services)
- Fleet & Mobility Solutions (fuel, tolls, maintenance and business travel)
- Complementary Solutions, including Corporate Payment Services (virtual payment cards, identified wire transfers and supplier payments), Incentive & Rewards (gift cards and platforms, and incentive programs), and Public Social Programs.
For more information: www.edenred.com
The logos and other trademarks mentioned and featured in this press release are registered trademarks of Edenred S.A., its subsidiaries or third parties. They may not be used for commercial purposes without prior written consent from their owners.
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1 Targets calculated using the Science Based Targets initiative methodology in line with the Paris Agreement goals.
2 Standard & Poor’s attributed Edenred a “Strong Investment Grade” rating in June 2010, which it reaffirmed in its publication dated May 11, 2019.