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
Baidu Weighs Spinoff of AI Chip Unit for Independent Listing
Nvidia Welcomes U.S. Nod to Sell H200 AI Chips in China
Chinese Chip Heavyweight Abandons Acquisition of Server Firm
LATEST
Chinese Chip Heavyweight Abandons Acquisition of Server Firm
Nvidia Welcomes U.S. Nod to Sell H200 AI Chips in China
Baidu Weighs Spinoff of AI Chip Unit for Independent Listing
Huawei’s Ren Downplays Chip Shortage, Touts AI for Industrial Value
China’s AI Chip Leaders Ride IPO Wave Amid Drive for Tech Self-Sufficiency
Tsing Micro Raises Over 2 Billion Yuan in State-Backed Round as China Ramps Up AI Chip Push
Synthetic Biology at Scale Could Reshape Food and Materials Systems, Expert Says
ByteDance in Talks With Smartphone Makers to Embed AI Assistant
Lenovo Executive Urges AI Startups to Take On Tech Giants
Infinigence AI Raises 500 Million Yuan to Expand Heterogeneous Computing Platform
Alibaba’s Quark Unit Launches AI Glasses Powered by Qianwen Model
Pony AI Plans to Triple Robotaxi Fleet to 3,000 by 2026 as Revenue Jumps
China’s Semiconductor Software Push Gains Traction Amid U.S. Curbs
Alibaba Scales Back Retail Spending, Dismisses AI Bubble Fears
Huawei Slashes Flagship Phone Price Amid Slowing Shipments
China’s CXMT Takes Aim at Global Leaders With High-End DDR5 Memory Chips
Alibaba’s Profit Plunges 72% on Costly Foray Into Instant Retail
Xiaomi, Founder Stem Stock Rout With $115 Million Buyback
Analysis: Soaring Legacy Chip Prices Spark Windfall — and Risk — Across Supply Chain
Alibaba, Ant Race to Catch Rivals in China’s AI App Boom
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