Musim Mas secured its inaugural sustainability-linked revolving credit facility. Partnering with Rabobank as sustainability coordinator and HSBC as lender, the company’s marketing arm, Inter-Continental Oils & Fats, and its Spain and Italy biofuel entities, will convert its €150 ($167) million uncommitted revolving credit facility (RCF) into a sustainability-linked loan.
Musim Mas is strategically leveraging the loan to integrate environmental and social sustainability into its financial framework. The loan will be anchored on three key performance indicators (KPIs) – RSPO certification of independent smallholders, training of independent smallholders and maintaining a deforestation-free palm oil supply chain.
As the sustainability coordinator for the facility, Rabobank facilitated the integration of sustainability principles into the financing structure. Rabobank and HSBC serve as joint lenders for the revolving credit facility.
“Rabobank is honoured to have acted as the lead sustainability coordinator for Musim Mas in their inaugural sustainability-linked loan. Partnering with Musim Mas, one of our longstanding clients and a true leader in sustainability in the palm oil industry, in this inaugural deal, reflects the trusted relationship we have with them,” Gregory Vandeler, head of trade and commodity finance at Rabobank Asia, said. “Linking sustainability performance to financing is a way to support our clients in their sustainability commitments while simultaneously enhancing productivity, resilience and farmer livelihoods. There is great potential in making the agri-food sector more sustainable. In our role as a leading food, agriculture and trade commodity bank, we are committed to taking a leading role in working closely with our clients in their sustainable transition journeys.”
“We have a longstanding relationship with Musim Mas, and we are glad to be able to further deepen our support with their first sustainability-linked loan,” Priya Kini, head of commercial banking of HSBC Singapore, said. “Musim Mas wants to embed ESG principles into their core business operations and financing activities, and we are pleased to help them do so. This collaboration is a clear demonstration of HSBC’s ongoing efforts to support our clients’ transition to a more sustainable future.”
“Contracting a sustainability-linked loan with ambitious, meaningful and measurable targets is a testament to Musim Mas’ deep-rooted commitment to sustainability and responsible corporate behavior,” Alvin Lim, chief financial officer and executive director at Musim Mas, said. “Musim Mas is reinforcing to our stakeholders — financial banks, customers and employees — about our dedication to driving positive environmental and social impact while delivering long-term value.”
