Wilmar International and Crédit Agricole CIB have announced the successful closure of a two-year US$100 million ($132.9 million) sustainability-linked facility.
The margin of the facility will depend on Wilmar’s performance of the pre-determined sustainability-linked key performance indicators (KPIs).
This is the second sustainability-linked facility from Crédit Agricole to Wilmar, following the first loan in 2019.
The facility has a tiered discount mechanism each KPI achieved will accord specific discounts. The margin will be reduced according to the total number of discounts applied.
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The KPIs for this particular facility include Wilmar’s inclusion in the Dow Jones Sustainability Index Asia Pacific, as well as achievements and, or improvements in benchmark rating by independent organisations and traceability targets.
“Our adoption of sustainable financing is a demonstration of our commitment to sustainability goals, which permeates every aspect of our business operations. We believe that by taking a holistic approach towards building a responsible business, Wilmar will achieve long-term growth and create value for our stakeholders,” says Charles Loo, Wilmar’s chief financial officer.
“We are grateful to have Crédit Agricole CIB’s support as we take another step in our pursuit of continuous improvements in our sustainability performance. Together with like-minded partners, Wilmar hopes to create a more positive impact on the way businesses operate,” Loo adds.
“As a global leader in sustainable banking, Crédit Agricole CIB, through a comprehensive commodity trade finance offer, is pleased to have once again, worked with Wilmar on its sustainable journey, contributing to their concrete commitments to build a great agricultural and food business for the future,” says Jean-Pierre Michalowski, Crédit Agricole CIB’s senior country officer for Singapore.
As at 1.01pm, shares in Wilmar are trading 2 cents lower or 0.4% down at $5.36.
