Synlait secures New Zealand’s first ESG linked loan

Synlait Milk Ltd · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

SYNLAIT MILK LIMITED ANNOUNCEMENT NZX: SML
ASX: SM1
23 September 2019

SYNLAIT SECURES NZ’S
FIRST ESG LINKED LOAN
Synlait has entered into a four-year $50 million Environmental, Social and Governance (ESG) linked loan
with ANZ. This is the first loan in New Zealand which encourages a borrower to further improve its
reporting performance against a set of independent ESG criteria.

Synlait CFO Nigel Greenwood commented: “For Synlait, linking our financial arrangements to our ESG
performance made perfect sense. It reinforces to our shareholders and stakeholders that we are
committed to continuously improving our performance and disclosure, and aligns with our company
purpose, which is to do milk differently for a healthier world.”

The loan will effectively transfer ANZ’s existing $50 million committed four-year revolver loan into an ESG
Linked Loan. A discount or premium to the base lending margin is applied. The performance is based on
Sustainalytics’ ESG Risk Ratings, an assessment of a company’s exposure to financially material ESG risks,
measured annually. Sustainalytics prepare ratings for over 11,000 companies and are widely used in
Europe to assess risk ratings on companies implementing ESG-linked loans.

ANZ Head of Sustainable Finance Katharine Tapley commented: “Synlait’s strong commitment to
sustainable business practices made it an ideal candidate for this type of financing. We are excited to have
partnered with Synlait to secure New Zealand’s first ESG-linked loan as we jointly showcase that ESG
initiatives can deliver material financial benefits.”


For more information about Synlait visit www.synlait.com
or contact:
Jessica Thorn
Senior Communications Advisor, Synlait Milk
P: +64 3 373 3353
E: Jessica.thorn@synlait.com