Viterra is pleased to have entered into a new financing deal, expanding its sustainability linked borrowing base facility (BBF) with Commonwealth Bank of Australia (CBA).
Viterra’s $800 million BBF facility includes a new sustainability target focused on promoting grower engagement with the Better Cotton Initiative (BCI) and purchasing BCI-certified cotton.
The new target is in addition to Viterra’s original targets, which focus on:
- Grower engagement with International Sustainability and Carbon Certification (ISCC)
- Purchasing ISCC-certified Australian-grown grain
- Securing protein meals for import into Australia and other jurisdictions that are sourced from overseas farms that follow sustainable agricultural practices, including non-deforestation.
The inventory financing allows Viterra to use the Australian-grown grain and cotton it holds on hand as collateral to unlock capital the company can use to further support its activities.
Viterra Australia/New Zealand Chief Financial Officer – Trading Ian Ritter says that the sustainable financing is just one aspect of a global sustainability focus across the Viterra business.
“Across our network, we want to drive and support the industry to meet the demand of consumers while preserving the same opportunities for future generations,” Ian says.
“We’re very pleased to have achieved our targets last year and we’d like to thank growers for their participation in the ISCC which allows us to access key markets and provides sustainability confidence to our customers.
“This year we have set our ambitions higher and expanded our targets to include sustainable cotton. It is a timely opportunity to engage with our valued suppliers on sustainable cotton practices and leverage what we have achieved with the ISCC program to help cotton growers to unlock the opportunities for sustainably-produced ingredients and fibres.
“Operating a network that connects growers and end use customers, Viterra is in a unique position to help drive change and is playing a key role in deepening the understanding of these rapidly evolving new requirements with our growers.”
For more information on Viterra’s sustainability initiatives, visit viterra.com.au/Sustainability.