DBS today announced that it is providing leading agribusiness, Viterra, a USD 50 million trade finance facility with pricing tied to the sustainability performance of its supply chain in palm oil and palm kernel expeller (PKE), a by-product of palm oil extraction that is used as feed for livestock.

The working capital loan will be administered at preferential rates provided certain sustainability targets are achieved. The targets set cover non-deforestation and traceability goals and will encourage a greater proportion of Viterra’s suppliers to commit to sustainable practices.

Joanna Lim, Executive Manager Asia, Viterra, said: “Viterra is pleased to partner with DBS to establish this sustainability linked finance facility which supports the emphasis Viterra places on sustainability. We recognise the demand from customers for sustainable products, and we are committed to supporting industry initiatives. Across our network, we want to drive change to meet the demand of consumers while preserving the same opportunities for future generations.

“In regard to palm, Viterra does not own any plantations, mills, refineries or assets along the supply chain, and we are a relatively small participant in the industry. However, we want to play an influential role in the industry, and we have the opportunity to advance sustainability through our sourcing approach for palm oil and PKE.”

Viterra is one of the largest integrated originators of agricultural commodities in the world, operating in 37 countries. Its targets are aligned with goals established as part of the Agriculture Sector Roadmap to 1.5°C launched at COP27 and the company’s implementation plan.

By partnering corporate anchors like Viterra and leveraging their networks, DBS aims to encourage small and medium businesses along the supply chain to adopt sustainable practices. It is this ‘big to small’ approach that can help cascade sustainable practices more effectively.

Mark Troutman, Group Head of Sales Global Transaction Services, DBS Bank, said: “Viterra is demonstrating its commitment to enabling sustainable practices across its supply chains. By working closely with like-minded clients like Viterra, DBS’ goal is to develop practical solutions for large and small corporates alike, to enable greater supply chain transparency and traceability to pave the way to a green transition. We are also exploring opportunities to digitalise the supply chain. We look forward to building on this partnership with Viterra to help it achieve its sustainability ambitions.”

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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

DBS partners Viterra to improve supply chain transparency and traceability of goods through sustainable trade finance