Hamburg, Germany – Halcyon Agri’s subsidiary Corrie MacColl has secured a $25-million (€22 million) loan from Deutsche Bank to invest in its rubber plantations in Cameroon and Malaysia.
With the option to upsize to $75 million, the financial facility will be used for the maintenance of Halcyon’s rubber plantations and to promote its Cameroon Outgrower Programme, said Corrie MacColl in a 2 July statement.
Part of the group’s sustainable natural rubber supply chain policy (SNRSCP), the programme aims to provide additional food security and boost the income of 13,000 local smallholders in Cameroon.
Launched in 2018, the SNRSCP includes a no deforestation commitment which is claimed to be “a first for the industry.”
The terms of the loan will require Halcyon to comply with a mutually agreed sustainability framework developed by Environmental Resources Management (Singapore) Pte Ltd (ERM), throughout the life of the loan.
“We are committed to driving positive change through our efforts in sustainable finance, and are proud to pioneer sustainability-linked loans such as these in the market,” said David Lynne, APAC head of Corporate Bank at Deutsche Bank.
Also commenting on the "one-of-a-kind" load structure, Halcyon Agri chief financial officer Jeremy Loh said the company was supporting its overall corporate social responsibility strategy while developing standards for sustainable financing in the rubber industry.