Deutsche Bank has successfully closed a US$560 million sustainability-linked loan (SLL) with Hong Kong-based Health & Happiness (H&H) International Holdings that helps strengthen its environmental, social and governance (ESG) credentials in the global family nutrition and wellness sector.

The transaction builds on the success of H&H’s inaugural US$1.2 billion SLL in 2022, which the bank also arranged, and will be used to refinance the 2022 SLL facility.

The key performance indicators (KPIs), structured by Deutsche Bank, have been developed in line with Science Based Targets Initiative (SBTi) supplier engagement, renewable electricity, meeting globally recognized standards, and sustainable packaging. 

H&H’s leadership in supplier engagement, the company says, comes at a pivotal time, with growing scrutiny on reducing Scope 3 emissions, particularly those originating from the supply chain. By aligning its supply chain engagement with the latest SBTi standards, H&H states, it “is demonstrating its forward-looking and proactive approach to decarbonization”. 

The SLL has secured an independent second-party opinion from Sustainable Fitch, with the KPIs receiving an “Excellent” Rating. 

“The new loan will not only strengthen our balance sheet, but will enhance our focus on delivering positive environmental and social outcomes, creating long-term value for all stakeholders,” notes Jason Wong, H&H’s chief financial and operations officer. “We are particularly pleased to deepen our longstanding engagement with suppliers by using the most robust, science-based standards available to reduce our Scope 3 emissions.”