Viterra is pleased to have partnered with nine banks, led by CommBank (CBA), to establish an $800 million borrowing base facility (BBF) linked to sustainability targets.
Viterra’s facility aims to drive better sustainability outcomes through further promoting the International Sustainability and Carbon Certification (ISCC) and also supports sustainable agriculture efforts overseas, including non-deforestation, through the purchase of sustainably-grown oilseeds for protein meal imports into Australia.
To Viterra and CBA’s knowledge this is the first BBF in Australia to tie sustainability performance targets to the origination of domestic, sustainably-grown grain.
Viterra CEO Australia and New Zealand, Philip Hughes said the borrowing facility helps support the company’s purchase of grain direct from growers across Australia.
“We have purchased $2.4 billion worth of grain from more than 8000 growers since November last year and supply it through our network to customers in Australia and overseas.
“We have already exported nearly 3 million tonnes this season to 25 destinations around the world,” Philip said.
This BBF is the third sustainability linked facility across Viterra’s global network and supports the company’s emphasis on its sustainability pillars of health and safety, environment, community and human rights and food and feed safety.
“The sustainability of the grain industry is hugely important for everyone involved, from growers through to consumers.
“We want to work with growers to ensure the sustainability of products we export from Australia as well as the products we import.
“We have a long term outlook for our business and our customers, and if we meet our targets, we will reinvest the interest savings from the credit facility into future sustainability initiatives within the company,” Philip said.
The $800 million syndicated Sustainability Linked Borrowing Base Facility expands Viterra’s commitment to supporting sustainable farming practices among local growers by tying Viterra’s cost of capital to its performance against agreed sustainability targets over a four-year period. The targets focus on:
- grower engagement with International Sustainability and Carbon Certification,
- purchasing ISCC-certified Australian-grown grain,
- and securing protein meals for import into Australia that are from overseas farms that follow sustainable agricultural practices, including non-deforestation.
CommBank Executive General Manager, Commodities, Trade and Carbon, Alex Toone said the facility is part of the bank’s sustainable trade finance product suite, developed to support business and institutional customers in their transition work.
“CBA has an important role to play in building Australia’s future economy by supporting businesses, projects and assets that will drive our transition to a brighter, more sustainable future.
“We are incredibly proud to support Viterra on their drive to expand environmentally, socially and economically sustainable production practices in Australian agriculture, and also provide the ability to access finance while grain is in storage.
Viterra’s work is not only helping Australia’s farming communities in their preparations for the future, it is supporting our nation’s transition to a more sustainable economy,” Alex said.
CBA acted as sole sustainability coordinator, mandated lead arranger and book runner on the syndicated Sustainability-Linked Borrowing Base Facility that was supported by a total of nine banks. The syndicate is comprised of Commonwealth Bank of Australia, Coöperatieve Rabobank U.A (Australia Branch), Australia and New Zealand Banking Group Limited, MUFG Bank, Ltd., ING Bank (Australia) Limited, Mizuho Bank Ltd, Westpac Banking Corporation, DBS Bank Ltd., Australia Branch, and National Australia Bank Limited.
Background:
The International Sustainability and Carbon Certification is a global certification system for environmentally, socially and economically sustainable agriculture production.
Certification helps all participants in the agriculture industry from growers right through to exporters, manufacturers, financiers and consumers demonstrate responsibility towards:
- Reduction of Greenhouse Gas Emissions (GHG)
- Sustainable land use
- Protection of natural biospheres
- Increase of social sustainability
Viterra holds an International Sustainability and Carbon Certification as part of its focus on supplying commodities from sustainable supply chains and meeting end-use customers’ needs.
Viterra’s sustainability strategy is focused on the pillars of health and safety, minimising any operational impact on the environment, supporting the long-term development of local communities and upholding human rights, and meeting the highest safety standards in all food and feed products.
.webp)