Sustainability News & Deals

AAK - Mizuho acts as Structuring Agent on a 3-year SEK 500 million bilateral Green Loan

On September 27, 2022, Mizuho acted as Structuring Agent on a 3-year SEK 500 million bilateral Green Loan for AAK to support investment in biomass boilers.

Mizuho supported AAK with the structuring of this facility, including advising on the documentation to ensure the transaction adheres to the Green Loan Principles.

The loan will be closely linked to AAK’s sustainability targets and will be used for the investment in biomass boilers at the production plant in Aarhus, Denmark.

The initiative is expected to reduce the plant’s CO₂ emissions by approximately 90 percent and will also generate substantial savings as fossil fuel will be replaced by shea meal, a by-product from the plant’s shea oil extraction process. This will in turn generate ash, which can be utilized for fertilizing purposes. In essence, all parts of the shea kernels will be used.

Commenting on the deal, Ed Bevan, Director, Consumer & Healthcare Coverage said: "Addressing climate change and contributing to a low-carbon society, by financing our client's transition plans is a key pillar of Mizuho's business strategy. We are very pleased to work with AAK on a project that will contribute to reduce emissions and waste on landfill and is part of AAK's ambitious science based near term emissions targets."

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