OCBC and Wilmar ink sustainability-linked loan

Singapore

SINGAPORE banks are stepping up their sustainability credentials, with OCBC Bank becoming the latest to consider sustainability targets in order to prod companies into behaving responsibly.

OCBC and Wilmar International said on Friday that they have inked a deal that pegs the interest rate of the giant agri-business group's existing US$200 million revolving credit facility to its sustainability performance. The bank and Wilmar, the world's largest palm oil trader, said in a joint statement: "This is the largest sustainability-linked bilateral loan by a Singapore bank - one that is funded by a single lender and in collaboration with the borrower on achieving sustainability targets."