The collaboration is the first in the palm oil industry.
Wilmar International plans to convert a portion of its existing bilateral Revolving Credit Facility with ING Bank worth $201.84m (US$150m) into a sustainability performance-linked loan.
According to a press release, the move is part of Wilmar’s commitment to improve certain aspects of its environmental and social performance.
If Wilmar’s performance is able to pass the standards as set by Sustainalytics, there is a corresponding financial incentive as the interest rate for the loan with ING will be reduced for the next year.
Sustainalytics is a leading provider of environmental, social, and corporate governance research and ratings.
“Sustainability is a priority at Wilmar and we are constantly seeking improvements in our sustainability performance. Our collaboration with ING dovetails Wilmar’s commitment to a responsible business,” said Wilmar CFO Ho Kiam Kong.
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