12/03/2018 – News / Sustainability / Wilmar / ING / Singapore
Wilmar and ING team up on sustainability performance loan in Asia
Wilmar International Limited (Wilmar) has partnered with ING to convert a portion of its existing bilateral, committed Revolving Credit Facility of US$150m with the bank into a sustainability performance-linked loan. Wilmar is the first company in Asia to work together with ING to couple its sustainability performance to a loan.
This collaboration is also the first of its kind in the palm oil industry.
Wilmar has committed to improve aspects of its environmental, social and governance performance. Progress will be measured by Sustainalytics, and if the performance milestones are met, the interest rate for part of the loan will be reduced for the following year. Sustainalytics, a leading provider of environmental, social and corporate governance research and ratings, will track the company’s performance for a customised package of different Environmental, Social and Governance (ESG) indicators.
“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. We believe that incorporating sustainability metrics into every aspect of our business – from daily operations to corporate financing – is key to creating value for our stakeholders,” said Ho Kiam Kong, Chief Financial Officer of Wilmar.
The concept for this sustainability loan heralds a new approach for the green loans industry by encompassing not just environmental, but also social and governance aspects.