By Colin Kellaher 



  Grocery-store operator Koninklijke Ahold Delhaize NV on Tuesday said it has used the full proceeds of the 600 million euro ($675 million) sustainability bond it sold last year to increase its use of sustainably sourced products, reduce its climate impact and promote healthier eating. 


  The Netherlands-based owner of chains such as Stop & Shop and Food Lion said it spent EUR432 million to further expand sourcing of sustainable seafood, coffee, tea and cocoa. 


  Ahold said it invested EUR161 million in renewable-energy installations, energy-efficient equipment, refrigeration improvements and green buildings. 


  The company said it used the rest of the proceeds to implement and expand healthier eating initiatives while maintaining affordability. 


  Sustainability bonds combine the aspects of green bonds, which focus on environmental projects, and social bonds, which fund programs with objectives such as health-care access, food security and equitable employment. 


  Ahold's six-year bond, which it sold last June, made it the first retailer to issue a euro-denominated sustainability bond. 


  Sales of sustainability bonds are expected to rise to about $75 billion this year from $48 billion in 2019, Moody's Investors Service said in February. 


  Write to Colin Kellaher at colin.kellaher@wsj.com