AGRI3 Fund partially guarantees revolving credit facility
ETG secures inaugural USD 115m sustainability-linked revolving credit facility
ETG Group (“ETG”, the ‘’Company’’) announced that they have closed a USD 115m Sustainability-Linked Revolving Credit Facility (the “Facility”). The Facility represents a key milestone in the Group’s financing strategy, being the first syndicated and sustainability-linked facility, supported by a syndicate of seven financial institutions.
Sumitomo Mitsui Banking Corporation, DIFC Branch – Dubai acted as Sole Coordinator, Bookrunner, initial MLA and Joint Sustainability Coordinator, with Cooperative Rabobank U.A. as initial MLA and Joint Sustainability Coordinator (their commitment is partially guaranteed by the AGRI3 Fund). Mizuho Bank, Ltd joined as MLA and Bank of China Limited, Geneva Branch, JPMorgan Chase Bank, N.A., London Branch, Société Générale S.A. and The National Bank of Ras Al Khaimah (P.S.C) as Arranger.
The Facility is structured as a Sustainability-Linked Loan in line with the LMA Sustainability-Linked Loan Principles. It includes six Key Performance Indicators (“KPIs”) and Sustainability Performance Targets (“SPTs”) for the KPIs in the fields of decarbonization, reforestation, farmer extension services, and gender empowerment, supporting the Group’s strong commitment to improve the environmental and social impact of its operations and to invest in sustainable commodities and business practices.
ETG aspires to fully transform into a net positive business. To achieve this, the Group has developed a sustainability framework, focusing on three core principles, namely nature, people and business. The Netherlands based ESG research, ratings and data provider, Sustainalytics, provided a positive Second Party Opinion that assessed the materiality and relevance of the KPIs and the ambition of the SPTs.
The transaction generates niche social impact by enhancing food security, with a focus on improving the flow of agricultural commodities between Africa.
Paul van Spaendonk, ETG Chief Treasury Officer, commented: “Creating positive impact in the environment and the communities in which we operate is core to ETG’s vision. This inaugural sustainability-linked loan underlines ETG’s commitment to fully transform into a net positive business and the selected KPIs reflect our commitment to have a positive impact on nature, people and business. We are grateful to the syndicate for their support of this landmark transaction that will set the standard for the Group’s sustainable financing strategy going forward.”
About ETG
ETG has developed into a global player with a presence in more than 45 countries, spanning 6 continents.
The Group has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and food ingredients, energy, metals, technology and supply chain optimization.
Over 7000 employees contribute every day to achieve our vision and purpose, and live our values of Respect, Integrity, Pursuit of Excellence, Leadership and Meritocracy.
ETG’s verticals are structured in a manner to emphasize focus and optimize strategic growth opportunities. We adapt and grow responsibly as a diversified enterprise, creating a sustainable future for all our stakeholders.
It holds a diversified portfolio of lenders including significant DFI support.
For more information:
E-mail: communications@etgworld.com
Website: www.etgworld.com
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