Wilmar, OCBC Bank agreement links revolver interest to sustainability

By Wendy Van Sickle

Columbus, Ohio, June 8 – Wilmar International Ltd. has signed a deal with OCBC Bank that links the interest rate of Wilmar’s $200 million revolving credit facility to its sustainability performance, according to a press release

Under the agreement, Wilmar committed to furthering its sustainability agenda based on pre-set targets for a range of environmental, social and governance metrics that will be assessed annually by Sustainalytics, a global provider of ESG research and ratings.

If the targets are met, the interest rate on the facility will be reduced on a tiered basis.

This loan is the largest sustainability-linked bilateral loan by a Singapore bank and builds on the Responsible Financing guidelines issued in 2015 by the Association of Banks in Singapore. The guidelines aim to raise the bar when it comes to responsible and sustainable finance across Singapore’s banking sector.

“Everything that we do has to be evaluated from a long-term perspective because we are accountable to our community. Environmental sustainability is a journey. We want to be joined by as many like-minded partners as possible,” Elaine Lam, OCBC head of group corporate banking, said in the release.

Based in Singapore, Wilmar is an agribusiness company with activities in oil palm cultivation; oilseeds crushing; edible oils refining; sugar, specialty fats, oleochemicals and biodiesel manufacturing; and grains processing.

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