COFCO International and Standard Chartered have closed a $435mn sustainability-linked revolving credit facility tied to social and labour performance in South American agricultural supply chains, the companies said on March 19 in a press release.

The facility is structured around two key performance indicators: the volume of grains and oilseeds certified under recognised responsible agriculture standards, and the strength of supplier due diligence and labour protections in Brazilian soy and corn supply chains. Financing terms will adjust based on externally verified progress against both targets.

The companies described the deal as the first publicly disclosed sustainability-linked loan in the region's agriculture sector focused exclusively on social, rather than environmental, impacts.

'This facility represents a deep integration of our sustainability goals with corporate financial management, reinforcing our long-standing commitment to responsible sourcing and supply chain safeguards across key origination markets,' said Helen Song, chief financial officer at COFCO International.

Standard Chartered's chief sustainability officer, Marisa Drew, said sustainability-linked financing had until now largely centred on greenhouse gas emissions and environmental risk management. 'For COFCO International, we have used our deep supply chain expertise to structure a transaction that focuses on addressing social and resilience risks to their global supply chains,' she said.

The loan follows the Sustainability Linked Loan Principles, an industry framework governing such instruments.

South American agriculture underpins a significant share of global food and feed supply chains but faces mounting exposure to climate volatility and social risk. The facility is intended to support the expansion of certified sustainable supply chains and improve market access for agricultural producers in the region.

COFCO International is the overseas trading arm of China's state-owned COFCO Group and one of the world's largest grain traders. Standard Chartered is a UK-based international bank focused on Asia, Africa and the Middle East.

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