ROTTERDAM, THE NETHERLANDS — Louis Dreyfus Company B.V. (LDC) renewed its $650 million revolving credit facility (RCF) in Asia, including a sustainability-linked pricing mechanism. The transaction replaces its previous three-year $534 million RCF.

“We are pleased with the strong support from the Asian banking sector in securing our first sustainability-linked Asia RCF,” said Federico Cerisoli, group chief financial officer of LDC. “Together with our recent North American one, this development reflects LDC’s focus in applying our sustainability goals to our financing programs in a consistent and cohesive manner across our operating regions.”

This latest Asia RCF is LDC’s second sustainability-linked RCF, following the renewal of its $750 million North America RCF in May. Under the same pricing mechanism, the Asia RCF interest rate will be linked to LDC’s performance in meeting reduction targets in four areas: CO2 emissions, electricity and energy consumption, water usage, and solid waste sent to landfill.

According to the agreement, LDC will benefit from an interest rate margin reduction for every year in which it improves its sustainability performance, as validated by an independent auditor.

“Supported by a significant global asset portfolio, LDC is committed to producing, processing and supplying food for a growing world population, while minimizing our environmental impact,” said Andrea Maserati, chief operating officer of LDC. “As our teams continue to pursue the realization of our ambitious environmental protection targets, we appreciate the opportunity to translate them into greater financial savings for the company.”

The Asia RCF transaction was led and anchored by ABN AMRO, DBS, HSBC, OCBC Bank and UOB as joint lead arrangers and bookrunners, with ABN AMRO and DBS acting as sustainability coordinators.

In recent months LDC has been stepping up its game in committing to sustainability. In February as a member of the World Business Council for Sustainable Development’s (WBCSD) Soft Commodities Forum (SCF), LDC committed to supporting transparent and traceable soy supply chains in Brazil’s Cerrado region. SCF member companies recognize the existing risks and commit to act on supporting transparent and traceable soy supply chains in Brazil. Since then in June, SCF members, including LDC, published their first soy sustainability reports.

Also in June, LDC published its 2018 Sustainability Report, to set data driven-benchmarks for is carbon profile, reducing its energy and electricity consumption and working with suppliers to achieve its sustainability goals.