Wilmar International partnered with ING to convert a portion of its existing bilateral, committed revolving credit facility of $150 million into a sustainability performance-linked loan.

Wilmar is the first company in Asia to work with ING to couple its sustainability performance to a loan. This collaboration is also the first of its kind in the palm oil industry. Wilmar has committed to improve aspects of its environmental, social and governance (ESG) performance.

Sustainalytics, a provider of environmental, social and corporate governance research and ratings, will track the company’s performance for a customized package of different ESG indicators. If the performance milestones are met, the interest rate for part of the loan will be reduced for the following year.

“Sustainability is a priority at Wilmar and we are constantly seeking improvements in our sustainability performance. Our collaboration with ING dovetails Wilmar’s commitment to a responsible business. We believe that incorporating sustainability metrics into every aspect of our business, from daily operations to corporate financing, is key to creating value for our stakeholders,” said Ho Kiam Kong, Wilmar CFO.

The concept for this sustainability loan heralds a new approach for the green loans industry by encompassing not just the environmental, but also the social and governance aspects.

“We are delighted to bring this innovative sustainability product to our customers in Asia Pacific. We appreciate the commitment and market leadership from Wilmar to get on board with the concept. We have a strong pipeline of sustainability deals and will continue to find innovative ways to empower and support our clients in their sustainability journey,” said Gerrit Stoelinga, CEO for ING Wholesale Banking Asia.