COFCO International and Standard Chartered have finalised a $435 millionsustainability-linked revolving credit facility, specifically designed to bolster responsible agricultural supply chains in South America.
The agreement marks a regional milestone as the first publicly disclosed sustainability-linked loan in the agricultural sector to focus entirely on social impact and resilience targets.
Unlike traditional green loans that focus primarily on carbon emissions, this facility ties financing terms to measurable improvements in supply chain labour standards and producer welfare.
COFCO International will be eligible for margin adjustments based on two externally verified Key Performance Indicators (KPIs):
- Certified volumes: Increasing the quantity of grains and oilseeds certified under recognised standards, including the COFCO Responsible Agriculture Standard.
- Labour safeguards: Strengthening supplier due diligence and labour protections within Brazilian soy and corn supply chains.
The deal addresses growing social and climate risks in South American agriculture, which is vital to global food security. By linking credit to social compliance, the partners aim to improve market access for farmers while ensuring long-term productivity.
“This facility represents a deep integration of our sustainability goals with corporate financial management,” said Helen Song, CFO of COFCO International. “It reinforces our commitment to responsible sourcing across key origination markets.”
Standard Chartered, acting as the lead bank, noted that the structure reflects a shift towards “social resilience” in sustainable finance. Marisa Drew, Chief Sustainability Officer at Standard Chartered, stated that while most sustainability-linked financing focuses on greenhouse gas mitigation, this transaction uses supply chain expertise to address human and social risks.
The loan follows the international Sustainability Linked Loan Principles, ensuring rigorous transparency and third-party verification of all social targets.
