Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Didi Considered Safest Ride-Hailing Platform Despite Murders, Survey Shows
Velodyne Lidar Cuts Direct Sales Team in China
Xiaomi Budget Brand Redmi Releases Cheaper Than Expected 5G Smartphone
LATEST
Chinese Genome Sequencing Firm to Supply Tech to Abu Dhabi Personalized Health Care Project
Apple Swerves $150 Levy on iPhones As U.S. and China Strike Trade Deal
China Merchants Bank Executive Arrested in Connection to P2P Business
Hillhouse-Backed Genor Plans $200 Million Hong Kong IPO
GitHub Looks to Open Subsidiary in China
5G Handsets Grow As Proportion Of China’s Sluggish Smartphone Market
China Executes Man Who Killed 3 Fearing Wife’s Forced Sterilization Under One-Child Policy
Agriculture Insurance Companies Take A Hit From African Swine Fever
Tencent-Backed News App Denies Explosive Fraud Allegations From U.S. Due-Diligence Firm
Defying Sentiment, WeWork’s China Rival Files for New York IPO
Electric Car Maker Nio Cuts 141 Jobs at North American Headquarters
Huawei Wins Telefonica Deal to Help Build German 5G Network
China Unveils First 3D Images From Newest Earth Observation Satellite
Tesla to Raise Prices in China Again, Sources Say
Didi Considered Safest Ride-Hailing Platform Despite Murders, Survey Shows
Risks and Benefits of China’s Private Sector Bailout
Xiaomi Budget Brand Redmi Releases Cheaper Than Expected 5G Smartphone
Major Chinese Freight Line Sees Shipments Fall 8% Amid Slumping Coal Demand
Sales of Chinese-Made Excavators Slow Amid Cooling Infrastructure Investment
BAIC Slump Persists With Bleak November NEV Figures
Cofco Raises $2.1 Billion in China’s First Sustainability Loan

By Bloomberg / Jul 17, 2019 02:40 AM / Finance

Photo: VCG

Photo: VCG

The trading division of China’s biggest food company obtained a $2.1 billion loan that links all of its main financing lines to environmental targets.

Cofco International Ltd.’s deal marks the first time a Chinese mainland company has embraced this new kind of financing agreement, known in the industry as a sustainability-linked loan. The deal offers lower interest rates in exchange for meeting targets such as tracing the origins of its soybeans to ensure they don’t contribute to deforestation in Brazil.

ING Group NV, Rabobank Group and Banco Bilbao Vizcaya Argentaria SA are the sustainability coordinators of the Cofco International loan. ABN Amro Group NV is the coordinator.

Cofco International estimates savings of about $1 million a year by meeting its targets and plans to spend the money funding its own sustainability goals, such as reducing the use of fossil fuels.

The loan includes three tranches with one- and three-year tenors. It’s priced 80 basis points above the London Interbank Offered Rate on the one-year tranche and 90 basis points on the three-year tranche. The loan’s margin offers as much as 5 basis points of incentive or premium depending whether targets are met. A basis point is a hundredth of a percentage point.

Cofco’s deal ranks among the world’s biggest sustainability-linked loans and the largest in the commodity trading industry. It will replace existing revolving credit and term-loan facilities, making it the first time a commodities trader tied its core source of trade finance capital to green targets.

Related: For Bond Investors in China, It’s Not Easy Buying Green


Share this article
Open WeChat and scan the QR code