United Overseas Bank (UOB) has extended a two-year $200 million sustainability-linked loan to leading agribusiness group Wilmar International to support its ongoing efforts to bring about agricultural sustainability in Asia.
The loan was structured by UOB and Wilmar, who identified a list of performance indicators in areas such as corporate governance, carbon emissions, land use and biodiversity, community relations, and supply chain practices.
The performance indicators will help ensure that Wilmar’s operations are socially and environmentally responsible as the group aims to meet global demand for food without causing a drain on the world’s resources.
The loan interest rate will be pegged to Wilmar’s achievement of the target set based on the list of performance indicators.
Sustainalytics, a global independent provider of environmental, social and governance (ESG) research and ratings will conduct the assessment of whether Wilmar has achieved those targets on an annual basis.
“In building a responsible business, Wilmar believes that the pursuit of our sustainability goals must encompass all aspects of our operations including seeking sustainable financing solutions at the corporate level,” says Charles Loo, Wilmar’s Chief Financial Officer.
“We are very pleased to have UOB’s support with this sustainability-linked loan which aligns our sustainability and corporate financing strategies. It is important to Wilmar that we continue to improve our ESG performance as the business grows,” Loo adds.
As at 12.39pm, shares in Wilmar were trading 3 cents higher, or 0.7% up, at $4.18.
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