Samworth Brothers announces sustainability-linked debt facility
Samworth Brothers has agreed a £150 million sustainability-linked revolving credit facility to support its strategic growth ambitions while underlining its commitments to environmental and social goals.
The fourth-generation family business is one of the UK’s leading manufacturers of chilled and ambient food products and it says this financing package will support investment across the business.
The new unsecured facility has been uplifted from the existing facility and is provided by a club of three banks, made up of HSBC UK and Lloyds Bank as the Group’s existing banking partners, and bringing in NatWest as a new banking partner. The facility is linked to three of Samworth Brother’s ESG priorities, being a reduction in carbon, a reduction in food waste intensity and an increase in the number of apprenticeships across the business.
Mark Samworth, chairman of Samworth Brothers, said: “We are delighted to be moving to these new arrangements. With this refinancing, we reaffirm our commitment to our long-term sustainability goals on carbon emissions, food waste intensity and social impact. As a fourth-generation family business we always seek to be a long-term force for good and so it was particularly important for us to address both environmental and social initiatives.”
Steve Bailey, Samworth’s Group Finance director, noted: “We’re happy to welcome NatWest to the club alongside our existing banks, HSBC UK and Lloyds. The uplifted facility size reflects the banking club’s support for our business and will facilitate capital investment to drive operational and environmental efficiencies.”
Meredith Casey, director at KPMG Debt Advisory, said: “This new facility demonstrates that debt financing remains available to strong businesses in food manufacturing, despite the backdrop of challenging economic conditions and volatility within the debt markets. The additional support provided by this expanded banking club is testament to the quality of the Samworth Brothers’ business and the importance of aligning financial objectives with wider sustainability goals.”