Dai-ichi Life has extended a five-year sustainability-linked loan (SLL) of $180m to Thai Union Group, a seafood producer best known for its canned tuna.
Thai Union has been recognised as one of the industry leaders in sustainability with its SeaChange strategy and has been included in the S&P Dow Jones Sustainability Indices (DJSI) for seven years running, topping the firm’s Food Products Industry Index in 2018 and 2019.
Interest rates for the SLL will be linked to key performance indicators (KPIs)around sustainability. Positive achievements will lead to the borrower being rewarded with a reduction in interest rates. The rates themselves were not disclosed.
The KPIs on which rates will be calculated include maintaining consistent rankings in the DJSI; achieving the company’s own greenhouse gas reduction targets; and Thai Union increasing oversight in its international supply chains by increasing use of electronic monitoring and/or human observers onboard tuna fishing vessels.