In a press release dated March 26, 2018 Olam International Limited, a leading agri-business operating across the value chain in 66 countries, announced “that it has secured a three-year sustainability-linked revolving credit facility aggregating US$500.0 million.
This is Asia’s first sustainability-linked club loan – one that has multiple banks issuing the loan together and in collaboration with the borrower on achieving sustainability targets.
Under the Facility, Olam is committed to meeting improvement targets for a comprehensive range of environmental, social and governance (ESG) metrics, as assessed by Sustainalytics, a global leader in ESG and corporate governance research and ratings. The metrics are tested on an annual basis and if the pre-set improvement targets are achieved, the interest rate on the Facility will be subsequently reduced.
Olam’s Co-Founder and Group Chief Executive Officer, Sunny Verghese, said: ‘We are proud to be the first company in Asia and the agri-sector to secure a sustainability-linked medium-term club loan that links interest rate on the loan to achieving clear sustainability targets.’”
You may read the press release on the Olam internet site.