COFCO International completes new sustainability-linked loan deal
Thursday, July 14, 2022
COFCO International signed an agreement for a new $1.6 billion multi-tranche sustainability-linked revolving credit facility with 19 banks from China, Australia, Europe, Japan, Singapore and the United States.
This is COFCO International’s third sustainability-linked syndicated loan and brings the company’s total sustainability-linked loan commitments to $2.3 billion. The company signed its first sustainability-linked loan in July 2019, which was the largest sustainability-linked loan for a commodity trader, and a second sustainability-linked loan in September 2021.
The new facility consists of a 364-day tranche and a 3-year tranche and follows guidelines based on Loan Market Association Sustainability Linked Loan Principles. The lenders have agreed to provide financial incentives in the form of lower interest rates for COFCO International to achieve pre-agreed sustainability targets covering the traceability and socio-environmental screening of its Brazil soy supplies and Sustainalytics’ ESG Management Score. Each sustainability target will be audited or assessed annually by an independent third party.
All margin savings will be used to fund the company’s own sustainability, traceability, or social and environmental improvement projects. Banco Bilbao Vizcaya Argentaria S.A. (BBVA), Bank of China (Hong Kong) Limited and SMBC Bank International plc (SMBC) are sustainability coordinators while BBVA is also the global coordinator as well as documentation and facility agent.
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