Asia’s leading agribusiness group Wilmar International is collaborating with Singapore lender DBS to promote corporate responsibility through a sustainability-linked loan. The collaboration, announced on August 10, will peg the interest rate of Wilmar’s existing two-year US$100 million revolving credit facility to a series of environmental, social and governance (ESG) performance metrics as it links its sustainability improvements with its corporate financing activities. The interest rate for this loan is based, in part, on the ESG rating of the company by Sustainalytics, a global provider of ESG research and ratings, and will be reduced on a tiered basis if pre-determined targets are achieved. WIlmar has already forged similar arrangements with two other banks, incorporating sustainability metrics into aspecst of its business. Yulanda Chung, head of sustainability, institutional banking group at DBS: “We see a growing market of sustainability-linked loans, which enable lenders to incentivise and reward corporations to advance their sustainability agenda. .

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The Asset