DBS announced that it is providing leading agribusiness, Viterra, a US$50m trade finance facility with pricing tied to the sustainability performance of its supply chain in palm oil and palm kernel expeller (PKE), a by-product of palm oil extraction that is used as feed for livestock.
The working capital loan will be administered at preferential rates provided certain sustainability targets are achieved. The targets set cover non-deforestation and traceability goals and will encourage a greater proportion of Viterra’s suppliers to commit to sustainable practices.
