Syngenta signs $ 4.5 bn sustainability-linked loan, Asia's largest in 2024

By Apple Ka Ying Li 

Agrochemicals giant Syngenta Group Co. signed a $4.5 billion sustainability-linked loan, according to a company statement on Monday, in Asia’s largest such dollar facility this year. 

The loan was upsized from an initial target of $3 billion following an over-subscription from a group of over 40 banks, including branches from mainland China and Singapore, said people familiar with the matter, asking not to be identified discussing private matters. 

 

The latest loan will allow the Sinochem-owned company to improve its debt structure and maturity profile by replacing its short-term funding with long-term financing, a Syngenta spokesperson told Bloomberg News. 

 

The financing matches the record previously set by Syngenta in 2022, when it raised an inaugural $4.5 billion loan linked to environmental, social and governance metrics. It also underscores the increasing popularity of the instrument as companies in the region continue to boost their decarbonization efforts. 

 

Borrowers in Asia-Pacific excluding Japan have raised $57 billion-equivalent of such facilities so far this year, a 19% jump from the same period in 2023, Bloomberg-compiled data shows. 

 

Bank of China Hong Kong and Credit Agricole SA were the sustainability structuring coordinators for Syngenta’s deal, which comprises three- and five-year tenors, the people said. The proceeds raised are for refinancing and general corporate purposes, the people added.

 

Credit Agricole declined to comment, while Bank of China didn’t respond to a request for comment.

 

In March this year, the company scrapped a $9 billion planned initial public offering in Shanghai. 

 

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.