COFCO brings certified Argentine soy to Vietnam feed sector
COFCO International has delivered its first COFCO Responsible Agriculture Standard-certified soymeal cargo into Vietnam, marking the entry of its certified South American supply into one of Southeast Asia’s fastest-growing feed markets. The shipment also represents the first export of COFCO Responsible Agriculture Standard-certified soy or soymeal from Argentina to any international destination. The soymeal cargo originated from COFCO International’s Argentina operations and was transported by MV El Juniper to Phu My Port, near Ho Chi Minh City. It follows recent certified COFCO International deliveries to Asia, including China, Thailand and Bangladesh. Sold to a leading Vietnamese provider of animal feed ingredients, the cargo will supply Vietnam’s export-oriented poultry and aquaculture sectors, where traceability and sustainability standards are increasingly tied to market access and global customer requirements. “Vietnam’s feed industry is closely connected to global markets where sustainability and traceability are increasingly important,” said Vu Chanh Ly, Commercial Director Vietnam at COFCO International. “This shipment demonstrates that competitively sourced South American soy can meet robust, independently recognised sustainability standards at scale, supporting customers’ export competitiveness.” The certified volumes are verified under Module 2 of the COFCO Responsible Agriculture Standard, which requires third-party on-site farm audits to verify compliance with environmental and social criteria and a 2020 no-deforestation and no-conversion cut-off date. COFCO International plans to increase certified sustainable soy supply to Southeast Asia to meet rising demand for traceable and responsibly produced commodities.
COFCO International and Standard Chartered close USD 435 Million sustainability-linked loan
COFCO International and Standard Chartered, a global cross-border bank, have closed a USD 435 million sustainability-linked revolving credit facility designed to support responsible agriculture supply chains in South America. The pioneering financing structure has been developed around social and resilience performance targets, making it the first publicly disclosed Sustainability-Linked Loan in the region’s agriculture sector focused entirely on social impacts. COFCO International has proactively aligned the facility’s financing terms with measurable improvements in responsible sourcing and supply chain social compliance. It builds on COFCO International’s long-existing responsible sourcing programmes and comprehensive due diligence frameworks across key agricultural supply chains. The facility aligns COFCO International’s financing terms with measurable sustainability performance targets. Through this deal, COFCO International will be eligible for margin adjustments based on two externally verified key performance indicators (KPI’s): Helen Song, CFO at COFCO International, added: “This facility represents a deep integration of our sustainability goals with corporate financial management, reinforcing our long-standing commitment to responsible sourcing and supply chain safeguards across key origination markets. By innovatively linking financing to measurable progress in certified sourcing and supplier due diligence, the structure supports the continued expansion of responsible and certified sustainable agricultural supply chains and improved market access for producers.” Wan Thonh, Head of Coverage, SG & ASEAN, Standard Chartered said: “The closing of this pioneering Sustainability-Linked Loan with COFCO International reflects our commitment to progress commerce in a way that delivers real impact for communities and supports a just transition. This milestone demonstrates the strength of our long-standing relationship with COFCO International and the trust they place in Standard Chartered, which enabled us to originate and structure a solution aligned to both COFCO International’s sustainability ambitions and our own values.” Marisa Drew, Chief Sustainability Officer, Standard Chartered said: “Leveraging our sustainable finance expertise to help close Standard Chartered’s first social resilience themed sustainability linked loan is an important step. Sustainability-linked financing has principally revolved around mitigating GHG emissions and managing environmental risks and impacts of business operations, however for COFCO International, we have used our deep supply chain expertise to structure a transaction that focuses on addressing social and resilience risks to their global supply chains.” South American agriculture plays a central role in global food and feed supply chains but faces growing exposure to climate volatility and social risk. Strengthening land-use governance, responsible sourcing practices and supply-chain oversight is therefore critical to maintaining long-term productivity, resilience and market access for both traders and the farmers who underpin global supply chains. This loan follows the Sustainability Linked Loan Principles.