KMD Brands, parent to Rip Curl and Kathmandu, reported it has refinanced its existing debt facilities with NZ$310 million of syndicated sustainability-linked multi-currency revolving facilities.
The three-and-a-half-year NZ$310 million facility consists of an AU$240 million multi-currency revolving facility and a NZ$54 million multi-currency revolving facility.
According to KMD Brands, the refinance increases tenor and provides significant ongoing liquidity to support the Group’s growth objectives.
The new facility adds to its previous sustainability-linked loan with revised targets that incorporate a pricing mechanism that incentivises ongoing improvement in achieving its ESG objectives. These include reducing greenhouse gas emissions, continued B Corp certification, and improving transparency within its supply chain.
KMD noted the achievement of these targets is linked to the borrowing costs of the facility. The sustainability-linked KPIs are built on the original targets set in 2021.
In the conversion of the debt facilities to sustainability-linked loans, the Group reported that it has successfully converted its guarantee facilities to be incorporated under the structure.
The structure was externally reviewed by an independent third party.
“Sustainability and ESG are core strategic pillars for the Group and we are delighted to set new challenges for our businesses to achieve in coming years,” KMD Brands Group chief financial officer Chris Kinraid said. “We continue to challenge ourselves to make better decisions for people and planet and linking our debt finance to these initiatives makes perfect sense for us.
“We would like to thank our banking group for their support of the refinance which received significant oversubscriptions from a range of high-quality domestic and international banks.”
ANZ Bank New Zealand Limited acted as Lead Arranger and Sustainability Coordinator for the transaction.