Export Trading Group (ETG) has inked a US$115mn sustainability-linked revolving credit facility, a first for the supply chain manager as it aims to improve food security in Africa.

Japanese lender SMBC was sole coordinator, bookrunner, initial mandated lead arranger (MLA) and joint sustainability coordinator.

Rabobank was also an initial MLA and joint sustainability coordinator, a contribution partially guaranteed by AGRI3 Fund, an Amsterdam-based blended finance fund for sustainable agriculture projects.

Mizuho Bank was also an MLA, while Bank of China, JP Morgan, Société Générale and the National Bank of Ras Al Khaimah were arrangers.

The deal, structured according to Loan Market Association sustainability-linked loan principles, marks a “milestone” for ETG, the company says, as it looks to “transform into a net positive business”.

Its sustainability performance targets are in areas including decarbonisation, reforestation and farmer extension services, goals that have been assessed by ESG ratings provider Sustainalytics.

Particular focus will be on food security in Africa, including “improving the flow of agricultural commodities” around the continent.

ETG’s chief treasury officer Paul van Spaendonk says the loan reflects the firm’s commitment “to have a positive impact on nature, people and business”.

“We are grateful to the syndicate for their support of this landmark transaction that will set the standard for the group’s sustainable financing strategy going forward,” van Spaendonk adds.

While this is the first sustainability-linked loan for ETG, the company has agreed facilities with a social purpose in the past.

In 2022, ETG’s subsidiary Agri Commodities and Finance agreed a US$100mn trade finance facility with the Eastern and Southern African Trade and Development Bank to support smallholder farmers.