Deutsche Bank approves US$25m green loan for rubber franchise Halcyon

It will be used for the maintenance of the company’s plantations.

Deutsche Bank has provided a $34.82m (US$25m) sustainability-linked loan facility to Corrie MacColl, a subsidiary of Halcyon Agri Corporation, to finance the company’s capex investments for its rubber plantations in Cameroon and Malaysia, an announcement revealed.

The loan facility has a three-year tenor and an accordion feature to upsize the facility to about $104m (US$75m).

The proceeds of the loan will be used for the maintenance of Halcyon’s rubber plantations whilst promoting its Cameroon Outgrower Programme, which aims to provide additional food security and boost the income of 13,000 local smallholder farmers, according to the press release.

Corrie MacColl will be required to comply with the mutually agreed sustainability framework developed by Environmental Resources Management (Singapore) (ERM). Compliance will be assessed and verified by ERM, which has been appointed by Deutsche Singapore as consultant on the framework.

“Whilst ESG conditions attached to loan rates are not unusual in corporate lending facilities, it is the comprehensive nature of the KPIs that will set a new standard for the rubber industry, making this commercial loan unique,” the announcement read.

Halcyon is one of the world's leading rubber franchises. Halcyon developed its HEVEAPRO rubber processing standards in 2014 and released their Sustainable Natural Rubber Supply Chain Policy in 2018, which includes a No Deforestation commitment, a first for the industry.