The Bank of East Asia (BEA) and Wilmar International F34 have entered into an agreement for a two-year US$100 million sustainability-linked loan, the second between BEA and Wilmar.
The interest margin under the facility will be reduced on a tiered basis if Wilmar achieves certain pre-determined sustainability performance targets that cover a comprehensive range of environmental, social and governance (ESG) metrics.
These targets include Wilmar’s internal key performance indicators as well as external benchmarking standards, one of which is its continued inclusion in the Dow Jones Sustainability Indices (DJSI) World Index. First published in 1999, the DJSI World Index represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term ESG criteria.
Wilmar has maintained its inclusion in the DJSI World Index for three consecutive years since November 2021 — an achievement the company says reflects its position as a sustainability leader in the agribusiness sector.
Oh Ah Guat, BEA Singapore branch’s general manager, says: “We are pleased to be supporting Wilmar again with this sustainability-linked loan. This transaction underscores BEA’s broader commitment to support our key clients in navigating the sustainability journey and creating a positive impact to our society. We are proud to collaborate with Wilmar, whose sustainable business practices are broadly recognised.”
Charles Loo, Wilmar’s deputy chief operating officer and chief financial officer, says: “Our partnership with BEA reinforces our commitment to growing our business in a sustainable and responsible manner. Funds from this SLL facility will incentivise improvement in our ESG performance while expanding our financial resources.
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“As a frontrunner of sustainability in the agribusiness sector, we strongly believe in mobilising capital in a way that leaves a positive and lasting impact in the communities where we operate, charting the course to a more sustainable future for all,” adds Loo.
Shares in Wilmar closed unchanged at $3.41 on March 19.
