InfoSAWIT, JAKARTA – Musim Mas recently launched its first Sustainability-Linked Revolving Credit Facility (RCF). It was the significant effort to realize its sustainable business practice commitment. Together with Rabobank as the sustainable coordinator and HSBC as the other bank loaner, marketing division of Musim Mas Group, Inter-Continental Oils & Fats Pte. Ltd., and other biofuel companies in Spain and Italy would change the credit facility that reached EUR 150 million to be loans about sustainability.
Musim Mas strategically took advantages on sustainability-linked loan (SLL) to get environmental, social, and sustainable integration in its financial framework, reinforce its dedication in responsible business practices based on LMA Sustainability-Linked Load principles.
The loan would focus on three main performance indicators, Roundtable on Sustainable Palm Oil (RSPO) certification for independent smallholders, trainings for them, and nursery in free deforestation – palm oil supply chain. The annual progress of Musim Mas would get diversification externally by the trusted evaluators, confirm transparency and accountability.
The choice of three main performance indicators would base on some factors, such as, materiality and target ambition level. The independent smallholders would be the significant opportunity to increase sustainable palm oil production.
Musim Mas would do the best to increase the independent smallholders’ production that might cover 41$ of the production area, by empowering them to implement sustainable agricultural practices. By these, Musim Mas would escalate not only their welfare and social, but also get closer to its long term – goals to vanish deforestation and create tough and responsible palm oil supply chains.
As the sustainability coordinator for this facility, Rabobank would play the significant roles to integrate sustainable principles in financial structures. Rabobank and HSBC would deliver loans for the RCF.
Head of Trade & Commodity Finance Rabobank Asia, Gregory Vandeler said that Rabobank would be honored to be as the main sustainability coordinator for Musim Mas in loan about the sustainability. “The collaboration would reflect mutual trust and show our commitment to support sustainability transition of our client, while escalating the plantation productivity, security, and smallholders’ welfare,” he said, as in the official statement to InfoSAWIT, Friday (30/8/2024).
Head of Commercial Banking HSBC Singapore, Priya Kini mentioned that the institution would have the good long term – relationship with Musim Mas, be honored to support the company by delivering loan about the sustainability. “The collaboration would be the proof of HSBC in sustainability to support our client’s transition heading to more sustainable future,” Priya said.
The loan about sustainability would be the further things for Musim Mas’ commitment to integrate environmental and social consideration in its financing activity. Prior in 2021, Musim Mas got green trade loan facility with a bank in Singapore and in 2024, the company has been in cooperation with advance bank to get sustainable account with liquidity management structure that was formulated to optimize cash flow and capital while maintaining its focus on environmental, social, and governance (ESG).
“The loan contract about sustainability with the meaningful, structured, and ambitious targets, would be the evidence of Musim Mas’ commitment to sustainability and responsible companies,” Chief Financial Officer and Executive Director Musim Mas, Alvin Lim and continued, “Musim Mas emphasized other stakeholders – financial banks, customers, and workers about our dedication to positively encourage social and environmental impacts while delivering long term – values.” (T2)
