ROTTERDAM, The Netherlands – Louis Dreyfus Company B.V. (LDC) has renewed its US$650 million revolving credit facility (RCF) in Asia, which incorporates for the first time, a sustainability-linked pricing mechanism. The transaction replaces its previous three-year US$534 million RCF.
This latest Asia RCF is LDC’s second sustainability-linked RCF, following the announcement of the renewal of its US$750 million North America RCF in May. Under the same pricing mechanism, the Asia RCF interest rate will be linked to LDC’s performance in meeting reduction targets in four areas – CO2 emissions, electricity and energy consumption, water usage, and solid waste sent to landfill. According to the agreement, LDC will benefit from an interest rate margin reduction for every year in which it improves its sustainability performance, as validated by an independent auditor.
“We are pleased with the strong support from the Asian banking sector in securing our first sustainability-linked Asia revolving credit facility. Together with our recent North American one, this development reflects LDC’s focus in applying our sustainability goals to our financing programs in a consistent and cohesive manner across our operating regions,” said Federico Cerisoli, LDC’s Group Chief Financial Officer.
Andrea Maserati, LDC’s Chief Operating Officer added, “Supported by a significant global asset portfolio, LDC is committed to producing, processing and supplying food for a growing world population, while minimizing our environmental impact. As our teams continue to pursue the realization of our ambitious environmental protection targets, we appreciate the opportunity to translate them into greater financial savings for the company.”
The Asia RCF transaction was led and anchored by ABN AMRO, DBS, HSBC, OCBC Bank and UOB as joint lead arrangers and bookrunners, with ABN AMRO and DBS acting as sustainability coordinators.