Wilmar International has secured a US$100 million ($135.7 million) sustainability-linke dloan from Maybank.
The loan means that Wilmar will enjoy a reduced interest rate on a tiered basis if the group achieves a set of pre-determined environmental, social and governance (ESG) metrics.
The targets include Wilmar’s internal key performance indicators as well as external benchmarking standards including the continued inclusion in the e Dow Jones Sustainability Indices (DJSI) World Index.
Wilmar is the only Singapore-incorporated company under the food products category to be listed in the index. It has been included for three straight years since November 2021.
“The partnership with Wilmar exemplifies commitment to advance sustainability within the agribusiness sector. In 2024, we expect to see momentum pick up for sustainability-linked loans as these instruments serve a wider base of issuers in Southeast Asia. A key catalyst would be when climate-related disclosures become mandatory for all public listed companies in Singapore from 2025 followed by for large non-listed firms two years later,” says Gregory Seow, head of global banking Singapore at Maybank.
“We are pleased to have the support of Maybank through this sustainability-linked loan, allowing us to further leverage our progress in sustainability to add resilience to our capital position. This partnership underscores our dedication to sustainable growth and responsible financial management, aligning with our long-term strategic objectives,” adds Charles Loo, Wilmar’s deputy chief operating officer (COO) and chief financial officer (CFO).
See also: A US$12 bil climate fund is readying a rare bond issuance
Shares in Wilmar closed 4 cents lower or 1.25% down at $3.17 on May 9.
