GENEVA, SWITZERLAND — COFCO International on Sept. 22 signed an agreement for a new $700 million sustainability-linked three-year term loan with seven banks. The deal comes a little more than two years after COFCO inked an agreement with a consortium of 20 banks for a $2.1 billion sustainability-linked loan.

Under terms of the new agreement, COFCO said the lenders have agreed to provide financial incentives in the form of lower interest rates for COFCO to achieve pre-agreed sustainability targets covering the traceability and socio-environmental screening of its Brazil soy supplies and overall Sustainalytics ESG rating.

If COFCO meets the agreed sustainability targets, the related margin savings will be used to fund the company’s own sustainability initiatives.

ANZ and BBVA are joint sustainability coordinators while BBVA is also the documentation and facility agent.

In July, COFCO issued its 2020 sustainability report, ”Cultivating a Better Future.” In the report the company outlined the actions it has taken to keep people and food safe while keeping agricultural supply chains moving.

The report highlighted several major sustainability goals and achievements, including the company’s efforts to achieve fully traceable soy supply chains in Brazil.

“Despite the difficult operating environment in 2020, COFCO International was able to embed sustainability even further, leveraging traceability to deepen our understanding of supply chain risks and identify priorities for even better performance,” Julia Moretti, global head of sustainability for COFCO International, said when the report was released. “We are extremely grateful to all those partners, who have helped us progress towards sustainable supply chains, while reducing our environmental footprint and promoting human rights.”