SML - Synlait Milk Ltd

**Gerald** · 02-12-2020, 07:44 PM

" We have been able to leverage our sustainability performance to access an ESG-linked loan from ANZ Bank. The $50 million Environmental, Social and Governance (ESG) linked loan was a first in New Zealand and encourages a borrower to further improve performance and disclosure against a set of independent ESG criteria. A second $50 million ESG loan was arranged in 2020 with BNZ. A discount or premium to the base lending margin is applied to the loans, "

Might be something there Beagle

Wonder how much they save.

**Nigel** · 02-12-2020, 07:52 PM

Originally Posted by Gerald

Might be something there Beagle

Might also be something in it in terms of winning new customers. Like Synlait, Danone is also a B-Corp company. As more and more end users start paying attention to environmental issues, providence and sustainability, more companies will take a closer look at their own supply chains as it gives them a marketing edge. Eventually a sustainable supply chain may well simply be a requirement to do business, a licence to operate if you will.

Synlait is ahead of the game here. And if you have the likes of Danone wanting to do business with a NZ-based supplier/producer, Synlait's commitment to "doing milk differently for a healthier world" makes them an attractive partner.

**HITMAN** · 04-12-2020, 01:52 PM

I managed to jump onboard. Been watching this since listing, paid $5.20, has it hit is low or more falls to come.

**Cash_Lion** · 04-12-2020, 05:57 PM

think it's up from here to be honest.

**mcdongle** · 05-12-2020, 03:30 PM

Dont Synlait already make stuff for Danone?

**Nigel** · 05-12-2020, 09:16 PM

Originally Posted by mcdongle

Dont Synlait already make stuff for Danone?

I think we do already supply to Danone (did they come on board after the Fonterra botulism scare?).

I still think the "new multinational customer" is an Asian client, given that those were the new market opportunities discussed at the AGM.

**Scrunch** · 06-12-2020, 08:39 AM

Originally Posted by Gerald

" We have been able to leverage our sustainability performance to access an ESG-linked loan from ANZ Bank. The $50 million Environmental, Social and Governance (ESG) linked loan was a first in New Zealand and encourages a borrower to further improve performance and disclosure against a set of independent ESG criteria. A second $50 million ESG loan was arranged in 2020 with BNZ. A discount or premium to the base lending margin is applied to the loans, "

Might be something there Beagle

Wonder how much they save.

A few years ago Westpac presented to our team about possible sustainability/green bonds. It all sounded good till you asked if they came with a lower coupon and at that stage the answer was no, basically the same pricing as a non-green bond. Things may have moved on in the last few years, but unlikely to be saving many dollars (if any) relative to a vanilla loan. It does however sound better.