September 14, 2021
Earlier this year, our subsidiary PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”) launched the first sustainability-linked bond (“SLB”) in the agri-food industry globally and the first US$-denominated SLB from Southeast Asia.
With this issue, Japfa further reinforces its commitment to sustainability and the alignment of its sustainability strategy to the United Nations Sustainable Development Goals (“UN SDGs”), especially UN SDG 2: End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
The SLB is pegged to an environmental KPI to recycle water and manage wastewater at poultry operations. This SLB has widened out investor engagement, diversified our funding base and demonstrated investor confidence. The success of this SLB issuance is reflected by the ability to upsize the transaction to US$350m from the previous US$250m bond and lower the coupon to 5.375% amid volatile market conditions.
With this SLB our investors and stakeholders have the opportunity to partner with us towards a sustainable future.
Japfa was featured in DBS Food & Agribusiness ESG series: Banking for a Better World. In the episode, Japfa and DBS discuss how the SLB was set up.
Click here to read the press release on the SLB issuance.