UOB offers US$200m sustainability-linked loan to Wilmar International

UOB on Tuesday said it has offered a two-year US$200 million sustainability-linked loan to Wilmar International.

To structure the sustainability-linked loan with the agribusiness group, UOB worked with Wilmar to identify a list of performance indicators in areas including corporate governance, carbon emissions, land use and biodiversity, community relations and supply chain practices.

"The performance indicators will help in ensuring that Wilmar's operations are socially and environmentally responsible, as the company furthers its commitment to meeting the global demand for food without causing a drain on resources," the bank said.

The interest rate on the loan will be pegged to Wilmar's achievement of the pre-determined targets that are aligned to the list of performance indicators.

Sustainalytics, a global independent provider of environmental, social and governance research and ratings, will assess if Wilmar has achieved those targets on an annual basis.