WILMAR International has obtained a three-year, US$150 million sustainability-linked loan from OCBC. The loan will be used to finance general corporate and working capital requirements, the agribusiness group said on Thursday.
The loan is pegged to Wilmar's continued inclusion in an external benchmark index, among other sustainability targets. It is also the group's second sustainability-linked loan with OCBC, both parties said in a joint press statement.
If Wilmar achieves a set of pre-determined targets covering a range of environmental, social and governance (ESG) metrics, its interest rate will be reduced on a tiered basis.
These metrics 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 per cent based on ESG indicators. Wilmar made its debut on the DJSI Asia Pacific in November 2020.
Wilmar chief financial officer Charles Loo said: "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."
OCBC head of global corporate banking Elaine Lam said the bank will continue to partner its corporate customers on sustainable finance transactions, to chart more sustainable paths for businesses across industries and geographies.
Shares of mainboard-listed Wilmar were trading S$0.06 or 1.1 per cent higher at S$5.48 as at 10.34am on Thursday.