Bank of China contributes to NZD 320 million sustainability-linked syndicated working capital facility to Silver Fern Farms Limited

Project narrative

In June 2022, a syndicate of five banks -- including Bank of China -- agreed to terms on a NZD 320 million sustainability-linked syndicated working capital facility to Silver Fern Farms Limited. The facility has an unknown maturity and interest rate. The facility refinances an existing NZD 320 million working capital facility that closed in April 2022, and is tired to Silver Fern Farms achieving certain sustainability-linked performance targets. A strong performance on the facility's "Sustainability Performance Targets" (SPTs) would produce reduced variable interest rates for Silver Fern Farms. The pre-agreed and pre-defined targets as as follows: Adoption of the comprehensive New Zealand Farm Assurance Programme Plus (NZFAP+) by Silver Fern Farms suppliers; Reduction of processing emissions in line with its Science-Based Target initiative (SBTi) target of 42% Scope 1 and Scope 2; Greenhouse Gas emissions reduction by 2030 from 2020 baseline year; Reduction of total waste to landfill (incl. organic waste) from processing sites; Reduction of water used at processing sites; and Enhanced environmental monitoring and reporting. The syndicated is comprised of ANZ, Bank of China, BNZ, Citibank, and Rabobank. ANZ served as the Sole Mandated Lead Arranger and Bookrunner, and Joint Sustainability Coordinator, alongside BNZ and Rabobank.