BEIJING, CHINA — COFCO International last week announced signing an agreement for a new $1.6 billion linked loan with 19 banks from China, Australia, Europe, Japan, Singapore and the United States.
This is COFCO International’s third sustainability-linked syndicated loan and brings the company’s total sustainability-linked loan commitments to $2.3 billion. The company signed its first sustainability-linked loan in July 2019, which was the largest sustainability-linked loan for a commodity trader, and a second sustainability-linked loan in September 2021.
The lenders have agreed to provide financial incentives in the form of lower interest rates for COFCO International to achieve pre-agreed sustainability targets covering the traceability and socio-environmental screening of its Brazil soy supplies and Sustainalytics’ ESG Management Score. Each sustainability target will be audited or assessed annually by an independent third party.
In May, COFCO released its 2021 Sustainability Report, which included the following highlights:
- $3.9 million revenue generated from 670,000 decarbonization credits (CBios) from RenovaBio programme.
- Developed a Diversity Committee in Brazil where the company employs over 7,000 staff, offering training to over 70% of its managerial positions.
- 5.4% decrease on water intensity of its industrial operations; definitive action to address the findings of its global water risk assessment.
- 5.5% reduction in absolute GHG emissions, including through 3.4% decrease in the energy intensity of its industrial operations.
- Participation in the shipping industry’s Getting to Zero Coalition for cleaner fuels and the Sea Cargo Charter for standardized emissions reporting.