DBS and Wilmar International Limited (Wilmar) are joining hands to promote corporate responsibility through a sustainability-linked loan. The collaboration 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.
Based on the annual ESG ratings report developed by Sustainalytics, a global provider of ESG research and ratings, performance indicators covering issues ranging from biodiversity, greenhouse gas reduction, renewable energy to ESG governance are used in the evaluation. The interest rate for this loan is based, in part, on Sustainalytics’ ESG rating of the company and will be reduced on a tiered basis if pre-determined targets are achieved.
“We see a growing market of sustainability-linked loans, which enable lenders to incentivise and reward corporations to advance their sustainability agenda. This financial innovation enables DBS to work with clients to tackle industry challenges together,” said Yulanda Chung, Head of Sustainability, Institutional Banking Group at DBS.
Mr Ho Kiam Kong, Wilmar’s Chief Financial Officer, added, “We are delighted to be continuing our longstanding relationship with DBS on the sustainability course. Responsible financing is part of Wilmar’s holistic approach towards building a sustainable business. We are continuously seeking ways to improve our sustainability performance and we believe that forming partnerships with the like-minded will make a larger impact.”
This is Wilmar’s third and DBS’ second such facility. For more information on Wilmar’s sustainability efforts, please refer to its Sustainability Report 2017. For more information on DBS’ sustainability efforts, please visit its website: https://www.dbs.com/sustainability/default.page.
Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia’s leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.
Wilmar’s business activities include oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, manufacturing of consumer products, specialty fats, oleochemicals, biodiesel and fertilisers as well as flour and rice milling. At the core of Wilmar’s strategy is an integrated agribusiness model that encompasses the entire value chain of the agricultural commodity business, from cultivation, processing, merchandising to manufacturing of a wide range of agricultural products. It has over 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The Group has a multinational workforce of about 90,000 people.
Wilmar’s portfolio of high quality processed agricultural products is the preferred choice of consumers and the food manufacturing industry. Its consumer-packed products have a leading share in many Asian and African countries. Through scale, integration and the logistical advantages of its business model, Wilmar is able to extract margins at every step of the value chain, thereby reaping operational synergies and cost efficiencies. Wilmar is a firm advocate of sustainable growth and is committed to its role as a responsible corporate citizen.
For more information, please visit www.wilmar-international.com.
DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
DBS is at the forefront of leveraging digital technology to shape the future of banking, and has been named “World’s Best Digital Bank” by Euromoney. The bank has also been recognised for its leadership in the region, having been named “Asia’s Best Bank” by several publications including The Banker, Global Finance, IFR Asia and Euromoney since 2012. In addition, the bank has been named “Safest Bank in Asia” by Global Finance for nine consecutive years from 2009 to 2017.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of its 26,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.