COFCO International has secured a $435 million sustainability-linked loan with Standard Chartered, the first social impact-focused deal in South America’s agriculture sector. The financing supports responsible sourcing and supplier due diligence, strengthening sustainable supply chains delivering grains and oilseeds for the food and feed industries.
COFCO International, the overseas agricultural business platform of China’s largest food and agriculture company COFCO Corporation, and Standard Chartered, a global cross-border bank, have closed a USD 435 million sustainability-linked revolving credit facility designed to support responsible agriculture supply chains in South America. The pioneering financing structure has been developed around social and resilience performance targets, making it the first publicly disclosed Sustainability-Linked Loan in the region’s agriculture sector focused entirely on social impacts.
COFCO International has proactively aligned the facility’s financing terms with measurable improvements in responsible sourcing and supply chain social compliance. It builds on COFCO International’s long-existing responsible sourcing programmes and comprehensive due diligence frameworks across key agricultural supply chains.
The facility aligns COFCO International’s financing terms with measurable sustainability performance targets. Through this deal, COFCO International will be eligible for margin adjustments based on two externally verified key performance indicators (KPIs):
• Increasing volumes of grains and oilseeds certified under recognised responsible agriculture standards, including the COFCO Responsible Agriculture Standard
• Strengthening supplier due diligence and labour safeguards in Brazilian soy and corn supply chains
Helen Song, CFO at COFCO International, added: “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.”
Wan Thonh, Head of Coverage, SG & ASEAN, 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. This milestone demonstrates the strength of our long-standing relationship with COFCO International and the trust they place in Standard Chartered, which enabled us to originate and structure a solution aligned to both COFCO International’s sustainability ambitions and our own values.”
Marisa Drew, Chief Sustainability Officer, Standard Chartered said: “Leveraging our sustainable finance expertise to help close Standard Chartered’s first social resilience themed sustainability linked loan is an important step. 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.”
South American agriculture plays a central role in global food and feed supply chains but faces growing exposure to climate volatility and social risk. Strengthening land-use governance, responsible sourcing practices and supply-chain oversight is therefore critical to maintaining long-term productivity, resilience and market access for both traders and the farmers who underpin global supply chains.
This loan follows the Sustainability Linked Loan Principles.
