Royal FloraHolland inks € 210 mn sustainability-focused refinancing agreement

Pictured left to right are Jan Droppers – ABN AMRO, Ton van Adrichem – ING, David van Mechelen – Royal FloraHolland, and Gijs van der Wolf – Rabobank.

The world’s largest trade hub for flowers and plants, Royal FloraHolland has signed a €210 min  refinancing agreement with a consortium of leading international lenders.

The deal relates to the auction’s loan facilities with a consortium of three banks, under which it has secured €210mn  of financing, maturing in 2029.

The refi will replace the original but rarely used €195 mn credit agreement.

Royal FloraHolland plans to use the facilities to support its growth trajectory by financing its day to day operational activities, and real estate portfolio. The money will also be used to expand the Floriday digital sales platform and to build new real estate in the industrial zone Aalsmeer East.

In line with the cooperative’s ‘Growing Green Together’ tagline, Royal FloraHolland acknowledges that for long-term success, it must embrace sustainability. In its 113-year history, it is the first time that the auction has secured credit lines that are sustainability-focused, taking inspiration from the UN Sustainability Development Goals.

Royal FloraHolland’s chief financial officer, David van Mechelen says he is proud on the trust and confidence produced by the banks. “The refinancing deal will allow us to invest in our digital and physical sales platforms, and logistical hubs, directly benefiting our member growers and customers. Additionally, on our path to net-zero, we  plan to invest in green real estate, technology and machinery.”

Subscribing to the deal are international lenders Rabobank, ABNAMRO and ING.