The Nordic Investment Bank (NIB) and Faerch Group Holding A/S, the Danish supplier of thermoformed food packaging, have signed a ten-year sustainability-linked loan. The loan is connected to Faerch’s technology development and circularity targets, driving the transition to a net-zero and circular food packaging industry.
The EUR 100 million loan will co-finance Faerch’s expansion and development of recycling facilities in Europe.
The sustainability linked loan includes two key performance indicators (KPIs), with targets linked to avoided CO2e emissions and recycling yield, a measure of the efficiency of the sorting process.
Achieving the sustainability performance targets will result in better financing conditions for Faerch.
“Faerch’s commitment to transitioning to net-zero and circular food packaging aligns with NIB’s mandate to support projects mitigating climate change and enhancing resource efficiency,” says André Küüsvek, NIB President and CEO. “As such, this sustainability-linked loan, tied to ambitious key performance indicators, is an important addition to our portfolio promoting circularity.”
Founded in 1969 in Holstebro, Denmark, Faerch Group Holding A/S is a global leader in rigid food packaging and the world’s first integrated food packaging recycler. With over 50 years of experience in manufacturing and developing thermoformed food packaging, the company is committed to driving innovation and leading the industry in circular packaging and recycling solutions. Serving more than 4,600 customers worldwide, Faerch operates more than 25 production sites and employs around 5,500 people across Europe and the US. Faerch is owned by A.P. Moller Holding.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Søren Hovgaard, Country Lead Denmark, Senior Advisor, at +45 4081 3575, soren.hovgaard@nib.int
Arild Moen, Associate Director, Communications, NIB, +358 10 618 0496, arild.moen@nib.int
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