Musim Mas Signs its first Sustainability-Linked Loan with Rabobank and HSBC Bank

The selection of these KPIs was carefully driven by various factors, such as materiality and level of ambition of the targets. Independent smallholders operating on smaller-scale oil palm farms represent an important opportunity for advancing sustainable palm oil production. To sustainably increase the overall output volume of independent smallholders, who make up an estimated 41% of the production area[1], there is a need to improve the yield of these farmers. By empowering these smallholders to adopt sustainable farming methods, Musim Mas not only enhances livelihoods and promotes social equity but also advances toward its long-term goals of eliminating deforestation and fostering a resilient and responsible palm oil supply chain.

SINGAPORE, 29/08/2024 (informazione.it - comunicati stampa - agricoltura)

The selection of these KPIs was carefully driven by various factors, such as materiality and level of ambition of the targets. Independent smallholders operating on smaller-scale oil palm farms represent an important opportunity for advancing sustainable palm oil production. To sustainably increase the overall output volume of independent smallholders, who make up an estimated 41% of the production area , there is a need to improve the yield of these farmers. By empowering these smallholders to adopt sustainable farming methods, Musim Mas not only enhances livelihoods and promotes social equity but also advances toward its long-term goals of eliminating deforestation and fostering a resilient and responsible palm oil supply chain.

As the sustainability coordinator for the facility, Rabobank facilitated the integration of sustainability principles into the financing structure. Rabobank and HSBC serve as joint lenders for the RCF.

This Sustainability-Linked Loan marks another step in Musim Mas' commitment to incorporating environmental and social considerations into its financing activities. In 2021, the company secured a Green Trade Financing Facility with a Singapore bank, with RSPO certification as a key performance indicator under the Monetary Authority of Singapore (MAS)' Green Finance Industry Taskforce's Green and Sustainable Trade Finance and Working Capital Framework. In 2024, Musim Mas collaborated with a leading 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 its entities, while seamlessly integrating environmental, social, and governance (ESG) considerations.

For more information about Musim Mas, visit our website at this link .

CONTACT: Devane Sharma , communications@musimmas.com

View original content: https://www.prnewswire.co.uk/news-releases/musim-mas-signs-its-first-sustainability-linked-loan-with-rabobank-and-hsbc-bank-302233163.html