By Adriano Marchese

Koninklijke Ahold Delhaize NV said Thursday that it has priced its inaugural sustainability-linked bond amounting to 600 million euros ($715.7 million).

The Dutch grocer said the green bond has a term of nine years, maturing in mid-March, 2030, paying an annual coupon of 0.375%.

The company said the proceeds will be used for refinancing debt maturities and general corporate purposes.

However, the bond is linked to achieving certain sustainability performance targets by 2025, namely a reduction of scope one and two CO2e emissions by 29% from a 2018 baseline, and a reduction of food waste by 32% from a 2016 baseline.

Should it not meet those targets, the coupon will be adjusted.

"Sustainability-linked bonds represent the next phase of our ESG financing, where we bring our long-term commitments to tackle our carbon footprint and food waste directly to our investors," Chief Financial Officer Natalie Knight said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

03-11-21 1323ET