Agrochemical giant Syngenta Group Co has secured a $4.5 billion sustainability-linked loan, as announced in a company statement on December 23. This deal marks the largest dollar-denominated ESG facility in Asia this year.
Initially targeted at $3 billion, the loan was increased due to strong demand, with over 40 banks participating, including branches from mainland China and Singapore, according to sources familiar with the matter who spoke anonymously.
The funding will enable the Sinochem-owned company to optimize its debt structure and extend its maturity profile by replacing short-term borrowing with long-term financing.
The financing equals the record set by Syngenta in 2022, when it secured its first $4.5 billion loan tied to environmental, social, and governance (ESG) criteria. This record highlights the growing appeal of such instruments as regional companies intensify their decarbonization efforts.
Data compiled by Bloomberg indicates that borrowers across the Asia-Pacific region, excluding Japan, have raised the equivalent of $57 billion in ESG-linked loans this year, reflecting a 19% increase compared to the same period in 2023.
Bank of China Hong Kong and Credit Agricole SA acted as sustainability structuring coordinators for Syngenta’s latest deal, which includes three- and five-year terms. Sources stated Syngenta will use the funds for refinancing and general corporate purposes.
The company spokesman said Syngenta has no near-term plans to re-list, as it is “in a comfortable liquidity position in the short-to-medium term.” He added that the group has secured funding by issuing perpetual debt in the 2023 financial year.
