Global agribusiness COFCO International and international cross-border bank Standard Chartered have closed a US$435M sustainability-linked loan to support responsible agriculture supply chains in South America.
Developed around social and resilience performance targets, the financing agreement was the first publicly disclosed Sustainability-Linked Loan in the region’s agriculture sector focused entirely on social impacts, COFCO said on 19 March.
“This facility … integrates our sustainability goals with corporate financial management, reinforcing our long-standing commitment to responsible sourcing and supply chain safeguards across key origination markets,” said Helen Song, chief financial officer at COFCO International.
“By … linking financing to measurable progress in certified sourcing and supplier due diligence, the structure supports the continued expansion of responsible and certified sustainable agricultural supply chains and improved market access for producers.”
COFCO said the deal would help the company be eligible for margin adjustments based on two externally verified key performance indicators (KPIs): increasing volumes of grains and oilseeds certified under recognised responsible agriculture standards, including the COFCO Responsible Agriculture Standard; and strengthening supplier due diligence and labour safeguards in Brazilian soya and corn supply chains.
