InfoSAWIT, SINGAPURA–The Development Bank of Singapore(DBS) andWilmar International Limited (Wilmar) agreed to promote the responsibility of company through the loan relating to the sustainability. The collaboration would determine the interest rate from the revolving credit facility of Wimar, as one integrated palm oil plantation company which has been running for two years reaching US$ 100 million by assessing the environment, social, and governance (ESG) activity.
Based on the annual ESG rate report developed by Sustainalytics, a global ESG researcher and rate, the work indicators covering the issues, starting from diversity, green – house gas reduction, renewable energy and ESG, would be used to be evaluated. The interest rate in the facility would decrease in phase if the previous determined target could be realized.
“We see the developing markets and the loan relating to the sustainability, and it might be a chance to give loan, incentive, and appreciate the company to advance their sustainability agenda. The innovation of finance might be a chance for DBS to work with the client to handle the industrial challenge together,” Head of Sustainability, Institutional Banking Group in DBS, Yulanda Chung recently said in the official statement to InfoSAWIT.
Meanwhile Chief Financial Officer, Wilmar, Ho Kiam Kong said, the cooperation would be useful because it could make long term relationship between the company and DBS in sustainability sector. The responsible finance is part of holistic approach in Wilmar to develop sustainable business. “We keep looking for the ways to increase the sustainable work and we do believe that making partnership with the person (institution) who thinks of the same thing would make bigger influence,” he said.
The loan is the third one for Wilmar but the second for DBS. (T2)