The resources obtained from the issue will be used to pay debt that matures in the short term.
Unlike other labeled bonds, such as green, social or sustainable, the proceeds from linked bonds can be used for corporate or general operating purposes, but their rate varies depending on whether or not the stated objectives are achieved.
In the case of Grupo Herdez, its goal is to reduce its water consumption by 25% by 2030. Currently, the company consumes 2.3 cubic meters per ton produced; in eight years, this metric should reach 1.98 cubic meters per ton. In case of not achieving the objective, the company will have to pay a higher rate, explains Canavati.
This bonus is part of the company’s commitment to the 2030 Agenda of the United Nations (UN). “Where, according to our industry, we choose pillars of sustainability: people, community and planet, within this is the consumption of water, because in our processes we use a lot of water. (And) as it is an indicator that we can measure and we use it every day, we believe that it is very important to add this bonus to this indicator”, says Canavati.
To ensure that the objective is correct, Grupo Herdez had the support of Moody’s ESG Solutions. And there is an independent third party, which in this case is EY, which will be in charge of auditing that the company meets the defined objective.
Grupo Herdez is the fourth company to issue a bond linked to sustainability on the BMV. The total amount issued already amounts to about 18,000 million pesos and represents about 18% of the bonds listed on the BMV.
The issuance of this bond is in line with Grupo Herdez’s strategy of being more sustainable. In 2021, the company invested 3.5% of its net income in environmental projects, recycled 86.6% of the waste generated from its operations, 69.2% of its energy consumption came from clean sources, and reduced the intensity of its emissions by 15.9%. of greenhouse gases compared to the previous year.
“Companies that do not take care of the planet and that are indifferent to what is happening in the world, will cease to be relevant to the consumer and the impact will be reflected in lower sales, bad comments, loss of market,” Canavati warns. .