CBA supported Viterra to refinance its $800 million syndicated Sustainability-Linked Borrowing Base Facility (SL-BBF) and introduce a new sustainability target focused on promoting grower engagement with the Better Cotton Initiative (BCI) and purchasing BCI-certified cotton. Convened by the World Wide Fund for Nature (WWF), the Better Cotton Initiative is a non-profit, multi-stakeholder governance group that promotes better standards in cotton farming and practices across 21 countries.
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.
Due to the positive progress made through its initiatives to date, Viterra has committed to increase its original targets further, to ensure they maintain ambitious, impactful goals. This includes revising higher the annual trajectories of targets 1 and 2, and broadening the scope of target 3.
Commonwealth Bank worked with Viterra to structure the market-leading SL-BBF, which ties Viterra’s cost of inventory finance to its achievement of the above sustainability targets. Like a traditional trade finance facility, 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 continues to break new ground and lead the market with its commitment to promoting sustainable agriculture in its supply chain, and we are proud to support Viterra in this important work that propels Australia’s transition to a sustainable economy,” said Alex Toone, Executive General Manager, Commodities, Trade and Carbon, at Commonwealth Bank.