Wilmar International on Monday said it has partnered with ING Groep, the largest Dutch financial services firm, to convert some of its existing credit facility into a sustainable loan.
Singapore-based agribusiness giant Wilmar said ING will convert a portion of its existing bilateral, committed Revolving Credit Facility of US$150 million with the bank into a sustainability performance-linked loan.
Progress will be measured by Sustainalytics, and if the performance milestones are met, the interest rate for part of the loan will be reduced for the following year, Wilmar said in a regulatory filing.
Sustainalytics will track the company's performance for a customised package of different Environmental, Social and Governance indicators.
"We believe that incorporating sustainability metrics into every aspect of our business, from daily operations to corporate financing, is key to creating value for our stakeholders," said Ho Kiam Kong, Chief Financial Officer of Wilmar said.
Wilmar is the first company in Asia to work together with ING to couple its sustainability performance to a loan, it said.
Shares in Wilmar International ended down 0.3 percent at S$3.16 on the Singapore Exchange. The stock has lost 10 percent in an year.
