International banking group Standard Chartered announced the closing of a $435 million sustainability-linked loan with agri-business company COFCO International, with terms on the loan tied to the company’s performance towards climate adaptation and social goals in its agricultural supply chain.
According to Standard Chartered, the new transaction marks the bank’s first social resilience themed sustainability linked loan, and one of the first globally to integrate adaptation-focused resilience outcomes alongside social supply-chain safeguards. The closing of the loan follows a recent announcement from Standard Chartered that it surpassed its goal to reach $1 billion in annual income from sustainable finance in 2025.
Wan Thonh, Head of Coverage, SG & ASEAN at Standard Chartered said:
“The closing of this pioneering Sustainability-Linked Loan with COFCO International reflects our commitment to progress commerce in a way that delivers real impact for communities and supports a just transition.”
According to the terms of the new facility, COFCO will be eligible for margin adjustments based on two key performance indicators (KPIs), including increased volumes of grains and oilseeds certified under recognised responsible agriculture standards, and strengthened supplier due diligence and labour safeguards in Brazilian soy and corn supply chains. COFCO said that it aligned the facility’s financing terms with measurable improvements in responsible sourcing and supply chain social compliance.
Helen Song, CFO at COFCO International, said:
“This facility represents a deep integration of our sustainability goals with corporate financial management, reinforcing our long-standing commitment to responsible sourcing and supply chain safeguards across key origination markets. By innovatively linking financing to measurable progress in certified sourcing and supplier due diligence, the structure supports the continued expansion of responsible and certified sustainable agricultural supply chains and improved market access for producers.”
Marisa Drew, Chief Sustainability Officer at Standard Chartered, added:
“Sustainability-linked financing has principally revolved around mitigating GHG emissions and managing environmental risks and impacts of business operations, however for COFCO International, we have used our deep supply chain expertise to structure a transaction that focuses on addressing social and resilience risks to their global supply chains.”
