In another first for ING, we closed a $1.25 billion sustainability-linked pre-export facility agreement with the world’s largest potash producer, Russia’s Uralkali. It is the country’s biggest-yet syndicated sustainability-linked loan and the first in the CIS and Eastern Europe mineral fertilisers market.
Potash is a potassium-rich salt mainly used in fertilisers. The terms of the five-year loan agreement are linked to improvements in the company’s environmental, social and governance (ESG) strategy. As lead sustainability coordinator, ING supported Uralkali in selecting and defining three challenging key performance indicators from among its 10 ESG priority areas, which address sustainability improvements that are material to its business.
In addition to lead sustainability coordinator, ING also acted as facility coordinator and documentation agent. Credit Agricole, Société Générale and Rosbank were sustainability coordinators. Appetite among banks was high, with a total of 18 Russian and international banks participating in the syndicated transaction.
“This deal is in line with the sustainability-linked loan principles and is a great achievement for the company and the Russian fertilisers industry, setting a new market benchmark,” said Mikhail Chaikin, country manager of ING in Russia. The deal was one of 10 sustainable finance transactions ING closed this week.
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