Standard Bank and Oceana conclude sustainability-linked funding package
In October 2021, Oceana Group Limited – with Standard Bank acting as the Mandated Lead Arranger, Sustainability Co-Ordinator, Lender and Facility Agent – executed the first syndicated sustainability-linked funding package in the CPG sector in South Africa.
Sasha Cook, Head: Investment Banking, Western Cape and Executive, Sustainable Finance at Standard Bank says this deal demonstrates Oceana’s commitment to sustainability and embodies its core purpose: “We have become a part of a journey that sees Oceana becoming a leading global fishing company creating sustainable value and positively impacting people’s lives.”
At the value of R1.7 billion (about $109.8 million), the funding structure aligns Oceana’s financing decisions with its sustainability strategy focusing on resilience and environmental care and investing in their people linking into a combination of metrics viewed as being material focus areas and relevant to the group’s operations in South Africa and Namibia.
“It is also worth noting that the transaction is contributing to the United Nations Sustainable Development Goals. The selected KPIs and SPTs (sustainability performance targets) focus on increasing renewable energy usage, freon conversion in Oceana’s vessels as well as improved metrics around employee safety,” Sasha Cook says.
The KPIs and SPTs agreed between Standard Bank and Oceana are linked to the terms of funding provided and will be assured by an independent party.
“A key element of our longer-term strategy is to responsibly source and convert fish resources into value. This value is underpinned by the integration of sustainable, energy resilience and carbon neutral solutions into our business. This sustainability linked package is a big step towards enabling these solutions,” said Imraan Soomra, CEO, Oceana Group Limited.
The Oceana Group is Africa’s largest fishing company and one of the most empowered food companies on the JSE. They operate in South Africa, Namibia and the United States of America and market fish-based products in 46 countries, while managing a fleet of 54 vessels and eight cold storage facilities.
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.