DBS has revealed that Chew’s Agriculture

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  • 29 May 2019 12:00 AM
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Chew’s Agriculture Signs Singapore’s First SME Sustainability-linked Loan

The Development Bank of Singapore Limited (DBS) has revealed that Chew’s Agriculture, an egg producer in Singapore, has signed a 10-year, S$27 million (US$19.5 million) sustainability-linked loan with the bank. This marks a milestone for sustainable development in Singapore – it is the nation’s first sustainability-linked loan for an SME in Singapore. The loan was evaluated based on a series of environmental, social and governance (ESG) performance metrics. Under the terms of the loan, Chew’s will enjoy lower interest rates if it meets Humane Farm Animal Care (HFAC) standards such as providing livestock access to wholesome and nutritious feed, appropriate environmental design, caring and responsible planning and management of livestock, and skilled, knowledgeable conscientious animal care, factors which contribute to more nutritious eggs. To access DBS’s sustainability-linked loans, corporates are evaluated based on an annual sustainability review report assessed by an external independent party, tracking ESG. When the borrower meets or exceeds pre-determined ESG targets, the interest rate will then be reduced.

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