Wilmar International Limited has secured a three-year, US$150 million sustainability-linked loan from OCBC Bank. Under the facility, the interest rate will be reduced on a tiered basis if Wilmar achieves a set of predetermined targets that covers a comprehensive range of environmental, social and governance (ESG) metrics. (Photo quoted from Wilmar’s website)

 

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. Launched in 2009, the DJSI Asia Pacific evaluates 600 of the largest companies in key Asia Pacific markets and recognises the top 20 percent based on environmental, social and governance (ESG) indicators. Wilmar debuted on the DJSI Asia Pacific in November 2020 – an achievement that reflects its position as a sustainability leader in the agribusiness sector. 

 

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. OCBC Bank and Wilmar had previously collaborated on a US$200 million sustainability-linked loan in 2018. 

 

Commenting on its second sustainability-linked loan with OCBC Bank, Mr. Charles Loo, Wilmar’s Chief Financial Officer, said, “We are glad to work with OCBC Bank again to advance the sustainability agenda. Despite the challenges presented by the ongoing Covid-19 pandemic, Wilmar has demonstrated that our sustainability commitments remain a key priority and this is why it is important that our sustainability goals are aligned with every aspect of the Group’s business operations, including green financing. 

 

Wilmar continues to improve our ESG performance in tandem with their business growth and that is the cornerstone of the Group’s long-term success.” Ms. Elaine Lam, Head, Global Corporate Banking, OCBC Bank, said, “We are pleased to be supporting Wilmar again with this sustainability-linked loan, this time pegged to an external benchmark index. 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. OCBC will continue to partner our corporate customers on sustainable finance transactions, to chart more sustainable paths for businesses across industries and geographies.” 

 

About Wilmar International Limited Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia’s leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.

 

 At the core of Wilmar’s strategy is an integrated agribusiness model that encompasses the entire value chain of the agricultural commodity business, from cultivation and milling of palm oil and sugarcane, to processing, branding and distribution of a wide range of edible food products in consumer, medium and bulk packaging, animal feeds and industrial agri-products such as oleochemicals and biodiesel. 

 

It has over 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries and regions. Through scale, integration and the logistical advantages of its business model, Wilmar is able to extract margins at every step of the value chain, thereby reaping operational synergies and cost efficiencies. Supported by a multinational workforce of about 100,000 people, Wilmar embraces sustainability in its global operations, supply chain and communities.

 

(IRuniverse)