London-headquartered lender Standard Chartered and Singapore-listed agribusiness firm Wilmar International have closed a US$200 million sustainability-linked trade finance facility whose margin ratchet will move according to Wilmar’s annual performance against predefined internal key performance indicators (KPIs) and external benchmarking standards.

This transaction, the bank says, underscores its commitment to leverage its sustainable finance capabilities to support businesses’ transition to a low-carbon ecosystem and accelerate its journey towards building a green economy.

In October 2022, Wilmar committed to the Science Based Targets initiative and has earned global recognition for its environmental and social performance. In 2022, the company ranked third among Food Products companies on the DJSI World Index, took first place in the Global Child Forum’s benchmark for children’s rights, and topped the Sustainable Palm Oil Transparency Toolkit Assessment for the second consecutive year.

“The agricultural industry is integral to our shared vision of a low-carbon future, and Standard Chartered looks forward to supporting more businesses on their pathway to sustainable growth,” notes Freddy Ong, the bank’s head of client coverage, Singapore, corporate, commercial and institutional banking.

Charles Loo, Wilmar’s chief financial officer, adds: “It is important to align our sustainability goals with business and financial operations to build a responsible business that is future-ready.”