OCBC has loaned Wilmar US$200 million with a sustainability-based interest rate, making it Singapore’s largest sustainability-related bilateral loan funded by a single lender and in collaboration with the borrower on achieving sustainability targets. Based on a deal between the companies, the loan interest rate will be subsequently reduced on a tiered basis if Wilmar meets the pre-set target for the comprehensive environmental, social, and governance (ESG) metrics. “The prioritisation of ESG performance in the financial sector is an encouraging move in collective action for sustainability,” Wilmar CFO Ho Kiam Kong said. ESG global provider of research and ratings Sustainalytics is set to assess Wilmar’s performance regarding the target. “Sustainability is a top priority at Wilmar and we are pleased to be able to demonstrate that responsible business practices will lead to sustainable growth and lower financing costs,” the CFO commented. “Environmental sustainability is a journey. We want to be joined by as many like-minded partners as possible,” OCBC global corporate banking head Elaine Lam said.

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Singapore Business Review