AMSTERDAM, The Netherlands – JDE Peet’s, the world’s largest pure-play coffee and tea group by revenue announced that it has completed the refinancing of its existing indebtedness. The EUR 6.5 billion new financing comprises two key elements: 1) New, long-term investment grade debt facilities at JDE Peet’s N.V., including a EUR 1 billion term facility and a EUR 1.5 billion revolving credit facility, providing EUR 0.5 billion of additional liquidity. 2) A full or substantial repayment of the indebtedness of Peet’s Coffee and JDE International B.V. respectively. The remaining indebtedness at JDE International B.V. has been amended to investment grade terms and is now unsecured.
The new facilities are provided by 25 global financial institutions
The new EUR 2.5 bn investment grade facilities are connected to the company’s sustainability ambitions. JDE Peet’s has agreed with its core banks on a framework that leads the pricing mechanism to incentivise improvement in key sustainability areas affecting the industry and the company’s eco-system:
- Purchasing certified or verified coffee and responsibly sourced palm oil
- Supporting smallholder farmers through technical and other assistance
- Using recyclable, compostable and reusable packaging
- Reducing greenhouse gas emissions as part of our new formal commitment to the Science Based Target Initiative
“The successful refinancing of our debt and the revised capital structure is an important step in the journey of JDE Peet’s since our IPO last year. With these new facilities, we improve our debt structure, lower our cost of debt and further enhance our liquidity. I am also excited that we are embedding our sustainability goals into the capital structure of the company”, said Scott Gray, CFO of JDE Peet’s.
“Linking the new facilities to our sustainability ambitions marks an important milestone in our sustainability journey and demonstrates our long-term commitment to addressing the most important environmental and social issues affecting the coffee industry and our eco-system. I am pleased as well by the endorsement from our core banking group of our sustainability strategy and our strong business profile”.
