(Bloomberg) -- Agrochemicals giant Syngenta Group is seeking a $3 billion sustainability-linked loan, in what would be Asia’s largest dollar facility linked to environmental, social and governance-related metrics so far this year.
The Sinochem-owned company has mandated Agriculture Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp., Credit Agricole Corporate & Investment Bank SA, Industrial & Commercial Bank of China Ltd. and DBS Bank Ltd. on the loan, said the people, asking not to be identified as the matter is not public. The borrowing is split into three- and five-year tranches, the people added.
Sustainability-linked loans are making a comeback in Asia after volumes dropped last year. Companies in the region keen to boost its decarbonization efforts have raised $46 billion-equivalent of such facilities so far this year, a 28% jump from the same period in 2023, Bloomberg-compiled data shows.
Calls to a Singapore-based media representative for Syngenta went unanswered and the company didn’t immediately respond to an email seeking comment.
Proceeds raised will partially refinance a $4.5 billion three-year sustainability-linked loan from 2022, the people said. The previous financing was among the largest facilities linked to ESG metrics from Asia at that time.
The new loan carries an unspecified greenshoe option, said one of the people, which allows the size to increase beyond $3 billion depending on market demand. The three- and five-year tranches pay top-level all-in fees of around 1.05% and 1.20% respectively over the Secured Overnight Financing Rate, the risk-free benchmark rate for dollar deals, the same person added.
Trafigura Group’s Singapore-based unit in September raised a $3.2 billion-equivalent syndicated sustainability-linked loan, but that facility comprised of dollar and offshore yuan tranches, according to a statement. That borrowing, which was increased from an initial size of $2 billion-equivalent, drew 38 lenders in total.
(Updates story with Trafigura’s $3.2 billion multi-currency sustainability-linked loan)
©2024 Bloomberg L.P.