South America’s First SLL for Sustainable Agriculture

One principle remains constant: money drives momentum.

As global trade adapts to decarbonisation, deforestation-free pledges and human rights diligence, finance is emerging as a decisive force behind sustainability outcomes.

Once confined to small-scale pilots, sustainability-linked loans (SLLs) and green credit facilities are now reshaping corporate behaviour across essential supply chains.

Demonstrating this shift, COFCO International and Standard Chartered have finalised a US$435m sustainability-linked revolving credit facility aimed at strengthening responsible agricultural practices in South America.

This partnership represents the first publicly announced SLL in the region’s agricultural sector focused solely on social and resilience objectives – showcasing how financial innovation can drive transformation from the ground up.

“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,” says Helen Song, Chief Financial Officer at COFCO International. 

“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.”

Financing the future of agriculture in South Africa 

The loan’s design connects access to capital directly with measurable sustainability outcomes. COFCO International’s loan terms are tied to two externally verified performance indicators.

Firstly, the company will raise the volume of grains and oilseeds certified under internationally recognised responsible agriculture standards, including its own COFCO Responsible Agriculture Standard, which underpins ethical production and sustainable land use across its sourcing regions.

Secondly, it will enhance supplier due diligence and labour protections – particularly in Brazil’s soy and corn supply chains, critical to global food and feed markets but often linked to environmental and social risks.

Performance against these indicators will determine COFCO International’s loan margin adjustments – better results mean more favourable financing terms. Evaluated against the Sustainability Linked Loan Principles, this structure brings measurable accountability to capital deployment, ensuring sustainability targets carry tangible financial consequences.

COFCO International: shaping responsible supply chains

As the global agriculture arm of China’s COFCO Group, COFCO International is one of the world’s top agri-traders, sourcing, processing, and transporting grains, oilseeds and other commodities across more than 35 countries. Its operations in South America – especially Brazil and Argentina – make it a key contributor to food security and supply chain resilience worldwide.

In recent years, the company has reinforced its sustainability framework to address risks related to land-use change, labour rights, and supply chain transparency. Its Responsible Agriculture Standard sets clear expectations for ethical and environmentally sound farming practices, while its traceability initiatives help flag potential social and ecological impacts.

How Standard Chartered is extending green finance impact

For Standard Chartered, this transaction advances its strategy to channel finance toward sustainable growth in emerging markets. The bank continues to pioneer sustainability-linked instruments that extend beyond environmental metrics to consider social inclusion and supply chain resilience.

“Leveraging our sustainable finance expertise to help close Standard Chartered’s first social resilience themed sustainability linked loan is an important step,” says Marisa Drew, Chief Sustainability Officer at Standard Chartered. 

“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.”

Impact in the fields

South America’s agriculture sector feeds the world but faces mounting challenges – deforestation, labour rights issues and climate stress among them. Strengthening land governance, supplier due diligence and certification systems is now essential for both productivity and reputation.

By tying loan rates to measurable improvements in responsible sourcing and labour safeguards, the COFCO–Standard Chartered partnership catalyses meaningful change. It encourages supplier progress, supports farmer professionalisation, and aligns regional production with international expectations.

This model also sets a valuable precedent. As pressure intensifies on commodities like soy, corn and palm oil, integrating sustainability performance into financing structures may soon become standard practice.

Ultimately, the initiative exemplifies how finance can act as both incentive and guide – steering global trade toward practices that value people as much as productivity.

“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,” says Wan Thonh, Head of Coverage, SG & ASEAN, Standard Chartered. 

“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.”