$2.1 billion Sustainability-Linked Loan for Chinese COFCO
ING, BBVA and Rabobank have jointly coordinated and participated in a $2.1 billion Sustainability-Linked Loan (SLL) for Chinese commodities trader COFCO International.
It’s the first SLL for a Chinese commodities trader and the largest with a commodities trader worldwide. COFCO International will use the loan for refinancing existing term and revolving credit facilities which mature later this year.
The SLL will be linked to COFCO International’s sustainability performance. COFCO and the consortium of 20 banks agreed on annual targets connected to COFCO's sustainability rating conducted by Sustainalytics and improving the traceability of key commodities. If COFCO meets the agreed targets, an interest discount will be given by the lenders, which in turn will be used by COFCO to further improve performance across its sustainability priorities of sustainable supply, health and safety, environment, communities and upholding standards. This loan is structured in line with the Sustainability-Linked Loan Principles, a LMA-based framework.
More information in the press release.