Agrochemical giant Syngenta Group Co. has finalised a $4.5 billion sustainability-linked loan, marking Asia’s largest dollar-denominated facility of its kind this year. The company announced the agreement on Monday, following an oversubscription by over 40 banks, including institutions from mainland China and Singapore, according to sources familiar with the deal.
Originally targeted at $3 billion, the loan was upsized due to strong demand, demonstrating the rising appeal of sustainability-linked financing. Bank of China Hong Kong and Credit Agricole SA served as the sustainability structuring coordinators for the deal, which features three- and five-year tenors. Proceeds from the loan will be used for refinancing and general corporate purposes, sources said.
The financing matches the $4.5 billion Syngenta raised in 2022 through its inaugural loan tied to environmental, social, and governance (ESG) metrics. A company spokesperson stated that the latest loan will help improve the Sinochem-owned firm’s debt structure and extend its maturity profile by replacing short-term funding with long-term financing.
The deal underscores the growing momentum for sustainability-linked instruments as companies in Asia ramp up decarbonisation efforts. Borrowers in the Asia-Pacific region (excluding Japan) have raised $57 billion in such facilities this year, a 19% increase compared to the same period in 2023, according to Bloomberg data.
Despite the financial milestone, Syngenta recently shelved plans for a $9 billion initial public offering in Shanghai, citing comfortable liquidity in the short to medium term. The company has also secured funding through perpetual debt issuance in the 2023 financial year.
While Syngenta has no immediate plans to revisit its IPO, its latest sustainability-linked loan highlights the firm’s strategic focus on financial resilience and ESG alignment. Neither Credit Agricole nor Bank of China responded to requests for comment regarding the transaction.
