en.Wedoany.com Report, On March 19, COFCO International and the UK's Standard Chartered Bank signed a $435 million sustainability-linked loan agreement aimed at building a more responsible agricultural supply chain in South America. The interest rate for this revolving credit facility is directly linked to social responsibility targets, making it the first publicly disclosed loan in the South American agricultural sector solely focused on social responsibility.
COFCO International has incorporated responsible sourcing and social compliance performance in its supply chain into the financial terms, setting quantifiable targets. This move extends and deepens COFCO International's existing commitment to implementing responsible sourcing and comprehensive due diligence within its key supply chains.
COFCO International can benefit from preferential loan interest rates upon achieving the following two annual targets, verified by an independent third party: first, increasing the procurement volume of grains and oilseeds certified by the COFCO International Responsible Agriculture Standard or other third-party sustainability certifications; second, strengthening supplier due diligence and labor rights protection in the Brazilian soybean and corn supply chains.
Song Xuanyi, Chief Financial Officer of COFCO International, stated that this loan facilitates a deep integration of sustainable development and financial management, reinforcing COFCO International's long-term commitment to responsible sourcing in its core production regions. COFCO International has quantified certified procurement and supplier due diligence, pioneering their inclusion in financial terms. By leveraging financial instruments, tangible progress in sustainability can be achieved, expanding the ecosystem of responsible supply chains and continuously paving the way for producers to access international markets.
Zhou Yuntong, Head of Corporate and Investment Banking for Singapore and ASEAN at Standard Chartered Bank, pointed out that the execution of this pioneering loan fulfills the commitment to driving community development and supporting a just transition through commercial progress, demonstrating the deep mutual trust between both parties.
South American agriculture, as a central hub for global food and feed supply, faces dual challenges from climate change and social risks. Strengthening land governance, promoting responsible sourcing, and improving supply chain oversight not only safeguard the interests of traders and farmers but also protect long-term productivity, enhance industry resilience, and ensure the stable operation of global supply chains.
This loan adheres to the Sustainability-Linked Loan Principles.
