Japfa Ltd, a leading industrialized agri-food company, has successfully closed a $150 million sustainability-linked loan (SLL) with DBS Bank and Rabobank as joint sustainability coordinators. This loan marks a significant milestone in Japfa’s commitment to sustainable business practices and further solidifies its track record in sustainability financing transactions. The SLL is tied to key performance indicators (KPIs) aligned with Japfa’s sustainability strategy, addressing key material topics such as water recycling, zero coal, and improving access to nutrition.
Japfa’s sustainability strategy focuses on reducing freshwater use and wastewater discharge through water recycling, phasing out the use of coal in favor of cleaner energy solutions, and addressing malnutrition and stunting among children through its flagship CSR program, “Japfa For Kids”. The company aims to create a multiplier effect by providing education on balanced diets and access to affordable and nutritious proteins, ultimately improving the nutritional status of malnourished children.
As a leading animal protein producer in emerging Asia, Japfa is committed to enabling food security in the region while advancing sustainability across the value chain. The company strives to minimize environmental impact, promote efficient and ethical use of resources, and reduce food waste. Japfa’s CEO, Tan Yong Nang, emphasized the company’s determination to address pressing global challenges, from enhancing resource efficiency to improving nutrition and transitioning to cleaner energy sources.
The loan demonstrates the growing importance of sustainability-linked financing in driving positive environmental and social change within the agriculture sector. DBS and Rabobank, Japfa’s partners in this deal, are committed to collaborating with the company on its sustainability transition journey. The banks praised Japfa’s commitment to sustainability and its efforts to provide affordable nutrition to Asia’s emerging markets in an environmentally responsible way.
The SLL is a significant step towards achieving Japfa’s ambitious ESG goals and reaffirms its determination to address global challenges. The company’s partners, DBS and Rabobank, are dedicated to supporting Japfa’s sustainability agenda and driving greater impact in markets and communities across the region. The loan sets a precedent for the importance of sustainability-linked financing in the agriculture sector and highlights Japfa’s leadership in promoting sustainable practices and responsible production and consumption.