ABN AMRO, DBS Bank, HSBC, and United Overseas Bank provide sustainability-linked US$650 million revolving loan facility to Louis Dreyfus Company Asia Pte. Ltd.
Client(s) ABN AMRO Bank N.V., DBS Bank Ltd., HSBC, and United Overseas Bank Limited
Jones Day represented ABN AMRO Bank N.V., DBS Bank Ltd., HSBC, and United Overseas Bank Limited, as mandated lead arrangers and bookrunners, ABN AMRO Bank N.V. and DBS Bank Ltd., as sustainability coordinators, and each of the lenders in connection with a sustainability-linked US$650 million revolving loan facility provided to Louis Dreyfus Company Asia Pte. Ltd.
The facility incorporated sustainability-linked reporting and evaluation mechanisms and consequential interest rate adjustment mechanisms, and was guaranteed by Louis Dreyfus Company B.V.
In accordance with the sustainability linked pricing mechanism, the interest rate of the facility is linked to the borrower’s performance in meeting reduction targets in four areas – CO2 emissions, electricity, and energy consumption, water usage, and solid waste sent to landfill. In addition, the borrower benefits from a further interest rate margin reduction for every year in which it improves its CSR sustainability performance, as validated by an independent auditor.
Louis Dreyfus Company B.V. is a leading merchant and processor of agricultural goods, making up about 10 percent of the world’s agricultural product trade flows.This facility is the first sustainability-linked financing for Louis Dreyfus Company Asia Pte. Ltd.
