Industrialized agri-food company Japfa has successfully closed a US$150 million sustainability-linked loan ( SLL ) facilitated by DBS Bank and Rabobank as joint sustainability coordinators, marking the first time Japfa has included social key performance indicators ( KPIs ) in a sustainable finance instrument.

This SLL is tied to KPIs aligned with the company's sustainability strategy, addressing key material topics, such as:

• Water recycling – Water recycling, aimed at reducing freshwater use and wastewater discharge, is a cornerstone of the company’s sustainability strategy, supporting circular resource management and environmental stewardship.
• Zero coal – The company is committed to phasing out the use of coal, prioritizing cleaner energy solutions to reduce carbon emissions, enhance operational sustainability and combat climate change.
• Improving access to nutrition – Through its “Japfa For Kids” programme, the company is committed to addressing malnutrition and stunting among children. By providing education on balance diets in collaboration with local governments, health institutions and schools, the company aims to create a multiplier effect fostering lasting positive change in communities. Additionally, by providing access to affordable and nutritious proteins, the company directly addresses the immediate needs of malnourished children, helping to improve their nutritional status.

The company, as a leading animal protein producer in the emerging Asia region, says it is committed to enabling food security in the region while advancing sustainability across the value chain.

By championing responsible production and consumption, the company shares, it strives to minimize 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.

“This SLL marks another pivotal step in the company’s journey to align business growth with our ambitious ESG [environmental, social and governance] goals,” adds Tan Yong Nang, the company’s CEO. “The KPIs tied to this loan reaffirm our determination to address some of the most pressing global challenges, from enhancing resource efficiency to improving nutrition and transitioning to cleaner energy sources.”