Japfa Ltd, a prominent agri-food company based in Singapore, has secured a USD 150 million sustainability-linked loan. The loan was facilitated by DBS Bank and Rabobank, who acted as joint sustainability coordinators. This financial move underscores Japfa's commitment to sustainable business practices and marks the first instance of including social key performance indicators (KPIs) in their sustainable finance instruments.
The loan is aligned with Japfa's sustainability strategy, focusing on key areas such as water recycling, phasing out coal usage, and improving access to nutrition through its CSR program "Japfa For Kids." The initiative aims to reduce freshwater use and wastewater discharge, transition to cleaner energy sources, and address malnutrition among children.
Japfa's CEO Tan Yong Nang stated: “This SLL marks another pivotal step in Japfa’s journey to align business growth with our ambitious ESG goals. The KPIs tied to this loan reaffirm our determination to address some of the most pressing global challenges, from enhancing resource efficiency to improving nutrition and transitioning to cleaner energy sources. At Japfa, we believe that sustainable practices are not just integral to our business but essential to shaping a future where growth and responsibility go hand in hand.”
DBS's Adrian Chai expressed support for Japfa's efforts: “Nourishing present and future generations is an essential part of a sustainable future and is both a business and social imperative. DBS is pleased to be partnering Japfa...to support its journey towards providing affordable nutrition...in an environmentally responsible way."
Gregory Vandeler from Rabobank also commented on the collaboration: "Rabobank is proud to jointly facilitate this SLL for Japfa...and we are honoured to further supporting Japfa in achieving their sustainability ambitions."
This transaction highlights the growing importance of sustainability-linked financing within the agriculture sector. Both DBS and Rabobank have shown commitment to supporting Japfa’s sustainability transition journey.