Bunge Finance Europe, a subsidiary of Bunge, has successfully closed its first sustainability-linked revolving credit facility. The amended facility amends extends Bunge’s existing $1.75 billion revolving credit facility dated December 12, 2017.
Through the sustainability-linked mechanism, the interest rate under the amended facility is tied to the performance of five sustainability performance targets that highlight and measure Bunge’s continued advancement of its sustainability initiatives across the following three areas: 1) reducing greenhouse gas emissions by improving industrial efficiency; 2) increasing traceability for main agricultural commodities; and 3) supporting increasing levels of adoption of sustainable practices across the wider soybean and palm supply chain.
“By directly linking some of our core sustainability goals to our financing, we are taking another meaningful step towards fulfilling our commitment to drive best-in-class value chains that are transparent, verified sustainable and which can create positive impact on the ground,” said John Neppl, Bunge’s chief financial officer.
ABN AMRO Bank, BNP Paribas, HSBC, ING Bank, Natixis and Sumitomo Mitsui Banking served as active bookrunners, mandated lead arrangers and coordinators on the amendment and extension. In addition, ABN AMRO, BNP Paribas, Rabobank and Natixis served as sustainability co-coordinators and assisted Bunge in structuring the facility in line with the sustainability linked loan principles. ABN AMRO is serving as administrative agent.
Australia and New Zealand Banking Group, Bank of China, Bank of Montreal, The Bank of Tokyo-Mitsubishi UFJ, Citibank, Rabobank, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, Industrial and Commercial Bank of China, Mizuho Bank (USA), Société Générale, Standard Chartered Bank, UniCredit Bank, U.S. Bank and Wells Fargo acted as mandated lead arrangers and bookrunners for this transaction.
NY-based Bunge is a global wholesaler of oilseed and grain products and ingredients.