UOB extends US$200 million sustainability-linked loan to Wilmar in support of agricultural sustainability in Asia

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    15 September 2020

    United Overseas Bank Limited (UOB) is supporting Wilmar International Limited (Wilmar), a leading agribusiness group in Asia, in its ongoing efforts to advance its sustainability agenda through a two-year US$200 million sustainability-linked loan1.

     

    In structuring the sustainability-linked loan, UOB worked with Wilmar to identify a list of performance indicators in areas including corporate governance, carbon emissions, land use and biodiversity, community relations and supply chain practices. The performance indicators will help in ensuring that Wilmar’s operations are socially and environmentally responsible, as the company furthers its commitment to meeting the global demand for food without causing a drain on resources. This is especially important given that the global population is expected to increase to close to 10 billion by 20502.

     

    The interest rate on the loan will be pegged to Wilmar’s achievement of the pre-determined targets that have been set based on the list of performance indicators. Sustainalytics, a global independent provider of environmental, social and governance (ESG) research and ratings will conduct the assessment of whether Wilmar has achieved those targets on an annual basis.

     

    Mr Charles Loo, Wilmar’s Chief Financial Officer, said, “In building a responsible business, Wilmar believes that the pursuit of our sustainability goals must encompass all aspects of our operations including seeking sustainable financing solutions at the corporate level. We are very pleased to have UOB’s support with this sustainability-linked loan which aligns our sustainability and corporate financing strategies. It is important to Wilmar that we continue to improve our ESG performance as the business grows.”

     

    Ms Lim Chen Chen, Head of Group Structured Trade and Commodity Finance, UOB, said, “At UOB, we are committed to supporting clients in their ESG efforts through our deep sector knowledge and suite of sustainable financing solutions. Through our sustainability-linked loan to Wilmar, we are able to help them in their efforts to improve the sustainability of their operations and to meet the present needs of society without compromising the ability for future generations to enjoy the resources we have today. We believe that with our understanding of how businesses can achieve growth more sustainably, we will be able to support more companies in the commodity sector in their efforts to achieve positive outcomes for the environment and society.”


    1 Sustainability-linked loans are loan instruments and/or contingent facilities (such as bonding lines, guarantee lines or letters of credit) which incentivise the borrower’s achievement of predetermined sustainability performance objectives. Source: Asia Pacific Loan Market Association. https://www.aplma.com/en/gsl/41
    2 According to data from the United Nations. Source: https://www.un.org/development/desa/en/news/population/world-population-prospects-2019.html

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    About UOB
    UOB is a leading bank in Asia. Operating through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings.

     

    For nearly nine decades, UOB has adopted a customer-centric approach to create long-term value by staying relevant through its enterprising spirit and doing right by its customers. UOB is focused on building the future of ASEAN – for the people and businesses within, and connecting with, ASEAN.

     

    The Bank connects businesses to opportunities in the region with its unparalleled regional footprint and leverages data and insights to innovate and create personalised banking experiences and solutions catering to each customer’s unique needs and evolving preferences. UOB is also committed to forging a sustainable future through working with its stakeholders to create positive environmental impact, fostering social inclusiveness and pursuing economic progress. UOB believes in being a responsible financial services provider and is steadfast in its support of art, social development of children and education, doing right by its communities and stakeholders.

     

    For media queries, please contact media@uobgroup.com 

    UOB Newsroom

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