Ahold Delhaize’s recently issued Sustainability-Linked Bond (SLB) is another milestone on the multinational retailer’s sustainability journey. The new instrument re-uses Ahold's two Scope 3 targets, including those coming from land-use change.
Analysis of the SLBs, however, shows that the bonds have different step-up structures, and the latest bond carries the greatest potential option value due to its higher step-up materiality.
In this note, we also discuss Ahold’s performance trajectory, potential challenges in meeting its 2030 targets, and how investors can leverage this information in their decision-making.
Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.
