Crédit Agricole CIB supports Wilmar International Limited with its USD100 million Sustainability-Linked Facility
Wilmar International Limited (Wilmar) and Crédit Agricole CIB closed of a 2-year USD100 million Sustainability-Linked Facility. The margin of the facility will be dependent on Wilmar’s performance of the Sustainability-Linked Key Performance Indicators (KPIs). This is the second Sustainability-Linked Facility Crédit Agricole CIB has issued to Wilmar, following the first loan in 2019.
Unlike a conventional facility, the Sustainability-Linked Facility has a tiered discount mechanism whereby the achievement of each KPI is accorded a specified discount and the margin will be reduced by the aggregate of the discounts applicable for the KPI(s) achieved. The KPIs for this Sustainability-Linked Facility with Crédit Agricole CIB have been carefully selected to make the most meaningful impact across Wilmar’s supply chain. They include Wilmar’s continued inclusion in the Dow Jones Sustainability Index (DJSI) Asia-Pacific, achievements and/or improvements in benchmark rating by independent organisations and traceability targets.
Wilmar is a sustainability frontrunner in the agri-food sector. In 2020, it was included in the DJSI Asia Pacific, which represents the top 20% of the 600 largest companies in the region based on long-term economic, environmental and social criteria. It is the only agribusiness amongst the five Singapore companies included in the DJSI Asia Pacific.
Charles Loo, Wilmar’s Chief Financial Officer, said: “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. 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.”
Jean-Pierre Michalowski, Crédit Agricole CIB’s Senior Country Officer for Singapore, commented: “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.”
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