Singapore’s Japfa Ltd Raises $150 Million Loan

Singapore-based Japfa Ltd, a leading industrialised agri-food company, on Tuesday said that it has successfully closed a $150 million sustainability-linked loan (SLL) facilitated by DBS Bank and Rabobank as joint sustainability coordinators.

This milestone highlights Japfa’s steadfast commitment to sustainable business practices and further cements the Group’s track-record in sustainability financing transactions. This marks the first time Japfa has included social key performance indicators (KPIs) in a sustainable finance instrument, reflecting its holistic approach to sustainability.

This SLL is tied to KPIs aligned with Japfa’s sustainability strategy, addressing key material topics such as water recycling, zero coal, and improving access to nutrition,

Water recycling is aimed at reducing freshwater use and wastewater discharge. It is a cornerstone of Japfa’s sustainability strategy, supporting circular resource management and environmental stewardship.

With regard to zero coal, Japfa is committed to phasing out the use of coal, prioritising cleaner energy solutions to reduce carbon emissions, enhance operational sustainability, and combat climate change.

Japfa is committed to addressing malnutrition and stunting among children and it aims to improve access to nutrition through “Japfa for Kids,” the Group’s flagship CSR programme.

By providing education on balance diets in collaboration with local governments, health institutions, and schools, Japfa aims to create a multiplier effect fostering lasting positive change in communities. Additionally, by providing access to affordable and nutritious proteins, Japfa directly addresses the immediate needs of malnourished children, helping to improve their nutritional status.

As a leading animal protein producer in the emerging Asia region, Japfa is committed to enabling food security in the region while advancing sustainability across the value chain.

By championing responsible production and consumption, Japfa strives to minimise the environmental impact, promote the efficient and ethical use of resources and reduce food waste – critical steps towards the creation of a healthier, more resilient, and environmentally conscious global community.

Pivotal Step

Japfa CEO Tan Yong Nang said that this SLL marks another pivotal step in the company’s journey to align business growth with their ambitious ESG goals. The KPIs tied to this loan reaffirm Japfa’s determination to address some of the most pressing global challenges, from enhancing resource efficiency to improving nutrition and transitioning to cleaner energy sources.

The loan demonstrates the growing importance of sustainability-linked financing in driving positive environmental and social change within the agriculture sector, and Japfa’s partners in this deal, DBS and Rabobank, are both committed to keep collaborating with them on their sustainability transition journey.

Adrian Chai, Group Head of Global Industries, Institutional Banking, DBS, said that nourishing present and future generations is an essential part of a sustainable future and is both a business and social imperative.

Gregory Vandeler, General Manager Southeast Asia, Rabobank, said that Japfa’s commitment to food security and sustainability across the agri-food value chain aligns with their mission of growing a better world together.

“As a leading Food & Agri and Trade & Commodity Finance bank and with our bespoke financial solutions, we are dedicated to working closely with our clients to drive positive change for a better environment, improve access to nutrition and promote sustainable agriculture,” he added.