PORTUGAL – Sonae Arauco, one of the world’s largest wood-based solutions companies, has secured a EUR 200 million Sustainability-Linked Loan.

The financing is based on sustainability targets for 2029, including a 9.3% increase in recycled wood use and a 59% reduction in CO2 emissions (Scopes 1 and 2). Sustainability-linked loans adjust their terms based on the achievement of the defined ESG goals.

This financing reinforces Sonae Arauco’s commitment to a low-carbon economy transition. CFO Cristian Knollseisen stated that the contract’s KPIs are measurable and aligned with the company’s vision of fostering a circular economy and efficient natural resource management.

CaixaBank coordinated the loan’s sustainability, validated by DNV.

In 2024, Sonae Arauco incorporated 32% recycled wood into production, with some products exceeding 70%. The company is expanding its recycling centre network in Iberia, with 12 centres in total. It is also working on a decarbonization plan to achieve carbon neutrality by 2040. Its products annually retain 3 million tonnes of CO2.