Co-op and Banking Consortium Align £350 Million Funding to Ambitious ESG Targets

Co-op and Banking Consortium Align £350 Million Funding to Ambitious ESG Targets

(IN BRIEF) Co-op has arranged a £350 million sustainability-linked term loan over five years with HSBC UK, Barclays, ING, Lloyds, NatWest, and Rabobank. This facility reflects Co-op’s strong financial performance—including a 35 percent boost in operating profit, a return to profitability before tax, a 22 percent rise in membership to 6.2 million, and an S&P credit upgrade—and it extends its undrawn revolving credit through 2029. Financing costs will adjust based on ESG milestones: reaching Net Zero by 2030, securing Science Based Targets adoption by 79 percent of suppliers, reducing 650 tonnes of annual food waste, and aligning leadership diversity with UK demographics. Co-op CFO Rachel Izzard called the deal “a powerful endorsement of our mutual model,” while bank partners praised the co-operative’s sustainability leadership and resilience.

(PRESS RELEASE) MANCHESTER, 19-Jun-2025 — /EuropaWire/ — Co-op has secured a new five-year £350 million term loan from a consortium of six major banks—HSBC UK, Barclays, ING, Lloyds, NatWest, and Rabobank—linked directly to its rigorous sustainability and social impact objectives. This facility underscores Co-op’s robust financial position and its unwavering dedication to a fairer, more sustainable future driven by member priorities.

The agreement follows Co-op’s recent financial triumphs: a 35 percent rise in underlying operating profit and a return to pre-tax profitability for the first time since 2020. Membership surged by 22 percent to 6.2 million, and Standard & Poor’s upgraded Co-op’s credit rating in late 2024. The Group also extended its backstop undrawn revolving credit facility by five years, demonstrating market confidence in its ongoing resilience.

By locking in £350 million of funding through 2030, Co-op has ensured it can meet all impending bond maturities under favorable terms, with pricing tied to ambitious environmental, social, and governance (ESG) targets. These include achieving Net Zero by 2030; ensuring 79 percent of suppliers adopt Science Based Targets; cutting roughly 650 tonnes of annual food waste; and aligning leadership diversity with UK population demographics. Co-operative bank Rabobank’s involvement highlights the strength of shared values, particularly as the UN celebrates the International Year of Co-operatives.

Rachel Izzard, Co-op’s Chief Financial Officer, said: “This financing package powerfully affirms our renewed financial strength, the merit of our mutual model, and the shared voice of our members. Partnering with established lenders and new collaborators like HSBC UK and Rabobank allows us to weave social value into our capital strategy and remain accountable to our members’ priorities.”

Representatives of the banking partners echoed her enthusiasm:

• HSBC UK’s Robert King praised Co-op’s sustainability ambitions.
• ING’s Francesca Mosca highlighted the deal’s role in driving sustainable growth.
• NatWest’s Nioami Reddington underscored the Co-op’s resilient operating model and the strategic recalibration enabled by the new term loan.
• Barclays UK’s Fiona Parkes pointed to the contribution toward their £22 billion Prosperity Fund and global sustainable financing goals.
• Rabobank’s Renée Marais celebrated the shared focus on food, agriculture, and co-operative values.

Media Enquiries:

• Angharad Couch, 07507 643 004, angharad.couch@cdrconsultancy.com
• Mark Carrington, 07890 384 471, mark.carrington@coop.co.uk
• Sarah Fitton, 07702 506 126, sarah.fitton@coop.co.uk

About Co-op

Co-op Group is one of the world’s largest consumer co-operatives, operating across food retail, funerals, insurance, and legal services. Owned by over 6 million active member-owners, Co-op exists to meet their needs and champion the causes they care about.

With more than 2,300 food stores, 800 funeral homes and a wholesale business supplying around 6,000 additional outlets, Co-op employs 54,000 colleagues and generates annual revenues of over £11 billion. It is a recognised leader in ethical business and community-led programmes, creating long-term value for members and communities across the UK.

SOURCE: Co-operative Group Limited