Commonwealth Bank of Australia, along with a syndicate of nine banks, has secured an $800 million sustainability-linked agricultural inventory borrowing base.
Firm: Clifford Chance (Commonwealth Bank of Australia)
Deal: Clifford Chance has advised Commonwealth Bank of Australia and a syndicate of nine banks on an $800 million sustainably-linked agricultural inventory borrowing base facility for Viterra, one of Australia’s leading grain companies.
Value: $800 million
Key players: The transaction was led by partner Mark Gillgren with support from associates Isabella Bogunovich and Rubin Trehan.
Deal significance: This marks Australia’s first syndicated inventory financing structure to tie sustainability performance targets to the origination of domestic, sustainably grown grain. The new facility will support sustainable farming practices among local growers by linking Viterra’s cost of capital to its performance against agreed sustainability targets throughout its supply chain over four years.
Commenting on the deal, Mr Gillgren said: “We are proud to bring our extensive global experience leading complex sustainability-linked finance transactions to this landmark transaction for Commonwealth Bank of Australia.
“Merging international and Australian best practice in a high-profile syndicated domestic deal, the emergence of this new bankable financing structure for agricultural inventory can serve as a benchmark for other large-scale sustainable finance solutions in the Asia Pacific region.”