Musim Mas signs first sustainability related loan with Rabobank and HSBC Bank

SINGAPORE, August 29, 2024 /PRNewswire/ — Musim Mas is proud to announce its sustainability-related revolving credit facility, marking an important step in its commitment to sustainable business practices. In partnership with Rabobank as sustainability coordinator and HSBC as another lender, Musim Mas Group’s trading arm, Inter-Continental Oils & Fats Pte Ltd., and its subsidiaries in Spain and Italy will convert the facility they have a revolving credit (RCF) in English) of 150 million euros in a sustainability-related loan.

Musim Mas strategically benefits from a Sustainability Linked Loan (SLL) to integrate environmental and social sustainability into its financial framework, reinforcing its commitment to responsible business practices, in line with the principles of linked lending to the sustainability of the LMA. The sustainability linked loan will be based on three key performance indicators (KPIs) – RSPO certification for independent smallholders, creation of small independent owners,y Maintaining a deforestation-free palm oil supply chain. External verification of annual Musim Mas progress is carried out by accredited assessors, ensuring transparency and accountability.

The selection of these KPIs was carefully based on several factors, such as the relevance and level of ambition of the goals. Small independent farmers working on smaller scale oil palm farms represent an important opportunity to promote sustainable palm oil production. A steady increase in the total amount of production by independent small farmers, who represent about 41% of the production area^[1]the performance of these farmers needs to be improved. By empowering these owners to use sustainable farming methods, Musim Mas not only improves living conditions and promotes social equity, but also advances its long-term goals to eliminate deforestation and foster a resilient and responsible palm oil supply chain.

As the facility’s sustainability coordinator, Rabobank helped integrate sustainability principles into the financial structure. Rabobank and HSBC act as co-lenders to the RCF.

Gregory Vandeler Head of Trade and Product Finance, Rabobank Asia said: “Rabobank is honored to be the lead sustainability coordinator for Musim Mas on its first sustainability related loan. The agreement reflects the relationship of trust we maintain with them as a leading bank for raw materials for food, agriculture and trade, we are committed to playing a key role in working closely with our clients in the their sustainable transition processes”.

Priya KiniHead of Commercial Banking, HSBC Singapore ,: “We have a long relationship with Musim Mas, and we are pleased to be able to deepen our support with the first sustainability-related loan. We are happy to help them do that.

This sustainability-related loan marks another step in Musim Mas’s commitment to include environmental and social issues in its financing activities. In 2021, the company received a green trade finance facility with a bank in Singapore, with RSPO certification as a key performance indicator under the Monetary Authority of Singapore’s Green and Sustainable Finance Industry Task Force (MAS, for the acronym in English). In 2024, Musim Mas collaborated with a major bank to implement an innovative sustainable account with a liquidity management structure. This initiative was designed to optimize the group’s cash flow and working capital across all groups, while incorporating environmental, social and governance (ESG) considerations.

“Undertaking a sustainability-related loan with ambitious, meaningful and measurable goals is a testament to Musim Mas’s deep commitment to sustainability and responsible business conduct.” driving positive environmental and social impact while providing long-term value,” he said Mr. Alvin LimCFO and CEO of Musim Mas.

For more information about Musim Mas, visit our website in this connection.

INFORMATION: Devane Sharma, [email protected]

Picture – https://mma.prnewswire.com/media/2491209/Musim_Mas.jpg

View original content to download multimedia:https://www.prnewswire.com/mx/comunicados-de-prensa/musim-mas-firma-su-primer-prestamo-vinculado-a-la-sostenibilidad-con-rabobank-y-hsbc-bank-302234205. html

SOURCE Musim Mas Holdings