Asian Agribusiness Secures US$200 Million Sustainability-Linked Trade Finance Facility

Standard Chartered and Singapore-listed agribusiness firm Wilmar International Limited (Wilmar) announced the successful closure of a US$200 million sustainability-linked trade finance facility.

The margin ratchet on this facility will move according to the Singapore-listed agribusiness company’s annual performance against predefined internal key performance indicators and external benchmarking standards.

Wilmar has actively leveraged sustainable financing solutions since 2017. In October 2022, the company committed to the Science Based Targets initiative (SBTi) and has expressed its climate ambitions towards a 1.5-degree Celsius pathway.

Wilmar has also earned global recognition for its environmental and social performance. In 2022, the company ranked third among Food Products companies on the DJSI World Index, took first place in the Global Child Forum’s benchmark for children’s rights, and topped the Sustainable Palm Oil Transparency Toolkit (SPOTT) Assessment for the second consecutive year.

Wilmar’s principal business activities include oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, manufacturing of consumer products, specialty fats, oleochemicals, biodiesel and fertilisers as well as flour and rice milling.

Standard Chartered said the transaction underscores the bank’s commitment to leverage its sustainable finance capabilities to support businesses’ transition to a low-carbon ecosystem and accelerate the Bank’s journey towards building a green economy.

Commenting on the agreement Charles Loo, Chief Financial Officer, Wilmar, said: “We are pleased to have the support of Standard Chartered as we advance our sustainability ambition. Sustainable financing remains part of our holistic approach to integrate sustainability principles into every aspect of Wilmar’s business operations. We believe it is important to align our sustainability goals with business and financial operations in order to build a responsible business that is future-ready.”

Freddy Ong, Head, Client Coverage, Singapore, Corporate, Commercial and Institutional Banking, Standard Chartered added: “As an international trade bank focused on helping our clients transition to net zero and grow sustainably across their footprint, we are proud to be playing a key role in accelerating Wilmar’s sustainability progress. The agricultural industry is integral to our shared vision of a low-carbon future and Standard Chartered looks forward to supporting more businesses on their pathway to sustainable growth.”

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