OCBC Bank extends Wilmar a three-year US$150 million sustainability-linked loan
Wilmar International Limited (Wilmar), 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 pre-determined targets that covers a comprehensive range of environmental, social and governance (ESG) metrics.
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. We believe that we must continue to improve our ESG performance in tandem with our 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.”