Halcyon Agri refines NR sustainability goals with $300 million loan

SINGAPORE—Halcyon Agri Corp. Ltd. has secured a syndicated sustainability-linked loan of up to $300 million to support its medium- to long-term sustainability plans.

In establishing the loan, the company said it had refined its sustainability goals to cover the natural rubber processing business in Asia of Halcyon Rubber Co. (HRC) Group, which serves global tire companies.

Proceeds will be deployed for working capital purposes of HRC Group's natural rubber factories based in Asia, and to replace certain higher-interest loans, to bring down overall group financing costs.

HRC is a major supplier of natural rubber to the global tire industry: operating 36 factories with approvals from tire manufacturers worldwide.

Regarding its wider sustainability policy, Halcyon Agri said it has prioritized net-zero carbon emissions, net-positive water impact, responsible sourcing and equitable livelihoods, in-line with the United Nations' sustainable development goals.

In line with these priorities, the company said it is "currently working with professionals" to understand its global carbon footprint—toward committing to the "science-based targets initiative" by 2023.

Halcyon Agri's main initial sustainability performance targets (SPTs) are focused on energy efficiency, water-use intensity and traceable sourcing, as well as "source provenance" toward its "no deforestation" commitment.

As a leading natural rubber supplier, "we need to actively take steps to decarbonize our supply chain and protect our environment," said Li Xuetao, CEO of Halcyon Agri.

"The initial set of SPTs is an important step for (the) rubber processing business, which is in need of modernization, both from technology and sustainability perspective.

"We call on our fellow industry players to join us in this journey and would welcome any productive engagements based on ESG principles," the Halcyon Agri leader added.

The loan facility was supported by:

• Sole Coordinating Bank, Sole Sustainability Coordinator and Agent: UOB;
• Active Joint Mandated Lead Arrangers, Underwriters and Bookrunners: China CITIC Bank International Ltd. and UOB;
• Mandated Lead Arranger, Underwriter and Bookrunner: Bank of Communications Co. Ltd. Singapore Branch; and
• Senior Mandated Lead Arranger: Shanghai Pudong Development Bank Co. Ltd. Singapore Branch.