Wilmar International has entered a deal with the Bank of East Asia (BEA) for a three-year US$100 million sustainability-linked loan (SLL), the agri-business and the Hong Kong-based bank said in a filing to SGX Thursday.
Under the deal, the interest rate on the loan will be reduced on a tiered basis if Wilmar achieves environmental, social and governance (ESG) targets, the filing said. The targets include internal key performance indicators as well as external benchmarking standards, such as remaining in the Dow Jones Sustainability Index Asia Pacific, the filing said.
Wilmar noted that it is the only agri-business company of the four Singapore companies included in the index, which evaluates 600 of the Asia Pacific region’s largest companies and recognises the top 20 percent on ESG metrics.
Charles Loo, Wilmar’s chief financial officer, noted the company has singed more than 10 SLLs since 2017 for more than US$1.5 billion in sustainable financing.
“Besides interest savings, sustainable financing instruments such as SLLs enable us to align our business and sustainability goals, while continuing to make strides in our ESG performance,” Loo said in the statement.