Wilmar International has secured a US$150 million ($202.15 million) sustainability-linked loan from OCBC Bank.
Under the three-year facility, the interest rate will be reduced on a tiered basis if Wilmar achieves a set of pre-determined targets that cover environmental, social and governance (ESG) metrics.
These 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) Asia Pacific.
Wilmar has been included in the DJSI Asia Pacific since November 2020. It is the only agribusiness company out of the five Singapore companies on the index.
This is the first sustainability-linked loan that Wilmar has inked since its inclusion in the DJSI Asia Pacific. Wilmar had previously secured a US$200 million sustainability-linked loan from OCBC in 2018.
SEE: Green shoots emerging from the ashes of Covid-19 in palm oil sector
See also: JPMorgan pursues deals to finance shutdown of coal-fired power
Charles Loo, CFO of Wilmar, says that the company’s sustainability goals remain a key commitment.
“We believe that we must continue to improve our ESG performance in tandem with our business growth and that is the cornerstone of the Group’s long-term success,” he says.
Elaine Lam, head, global corporate banking at OCBC, says that the bank is pleased to support Wilmar again with a second sustainability-linked loan, this time pegged to an external benchmark index.
See also: Indonesia’s ‘ambitious’ net zero, coal phase-out plans ‘challenging’ in reality: BMI
“As a leading agribusiness group, Wilmar consistently raises the bar for the sector in terms of sustainability practices. We welcome Wilmar’s ongoing efforts in addressing key sustainability issues through their financing programmes,” she says.
Shares in Wilmar closed 7 cents or 1.28% lower at $5.42 on March 31.
