Yahoo Finance Co-op raises £300m for Fairtrade farmers with top-earning bond
The Co-operative Group has raised £300m through a unique bond to support Fairtrade goods and producers, the first ever issued by a retailer.
The group said the oversubscribed bond was as a sign of enthusiasm for fairer trade, with twice as many financial institutions interested as there were bonds issued.
The sterling bond meets the UN’s Sustainable Development Goals definition of “sustainable,” and will pay 5.125% interest over five years.
A Fairtrade mark promotes fairer trading conditions, workers’ rights and the environment, as well as guaranteeing producers a minimum price. The bond will help develop new Fairtrade products and fund marketing.
The Co-op says it is committed to working with Fairtrade producers. In West Africa, it is investing alreading in Fairtrade Africa’s Women’s Leadership School, and will work with women from seven farmer groups in Cote D’Ivoire.
It will also be working with Traidcraft to bring new product categories such as rubber gloves into the market.
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The group has said there is also sustained and growing enthusiasm among its consumers for Fairtrade.
In 2018, the Co-op had a 6.3% increase in Fairtrade sales on the previous year, and has now cornered 21% of the UK retail market in Fairtrade products.
Steve Murrells, chief executive of the Co-op, said: “The popularity of this bond demonstrates confidence in the Co-op’s growth strategy and in particular how we’ve placed sustainability at the heart of our future plans.
“Co-op was an early pioneer of Fairtrade, and now with the support of like-minded investors we can grow it further, opening up new opportunities and creating value for our members as well as producers and communities in developing countries.”
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