On December 23, 2024, Syngenta Group (HK) Holdings Company Limited ("Borrower") successfully closed a USD 4.5 billion syndicated sustainability-linked term loan facility. The facility includes three-year and five-year tranches and was arranged with the support of a syndicate of leading banks from various jurisdictions. The key arrangers and bookrunners include Agricultural Bank of China Limited Hong Kong Branch, Bank of China (Hong Kong) Limited, China Construction Bank Corporation Hong Kong Branch, Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd., and Industrial and Commercial Bank of China (Asia) Limited.

The loan facility garnered an overwhelmingly positive response from the banking community. Initially launched at USD 3 billion, it was oversubscribed by 2.6 times, with participation from more than 40 banks. This strong interest reflects robust confidence in Syngenta's creditworthiness and its sustainability agenda. Matching the size of the Borrower’s debut syndicated loan facility, which was closed in 2022, this transaction also represents the largest sustainability-linked term loan in the Asia Pacific loan market for 2024, according to LSEG LPC.

The funds from this facility will be allocated to refinancing existing debt and supporting general working capital requirements, ensuring the Borrower’s operational and financial flexibility. What sets this facility apart is its alignment with sustainability-linked targets. Specifically, the loan ties into two key goals from Syngenta’s updated sustainability priorities, which were introduced in April 2024. These priorities integrate sustainability into the company’s core strategy, underscoring its commitment to fostering sustainable innovation and creating long-term value.

The introduction of these sustainability priorities reflects Syngenta's focus on addressing global environmental and social challenges. By embedding measurable sustainability targets within its financing, the company demonstrates a proactive approach to aligning its business objectives with environmental, social, and governance (ESG) principles. This approach not only reinforces Syngenta's leadership in sustainable agricultural solutions but also establishes a strong framework for driving accountability and transparency in achieving its goals.

This landmark loan underscores Syngenta’s ongoing dedication to sustainability, building upon its history of integrating innovative solutions to address pressing global needs. The successful oversubscription highlights the financial sector’s confidence in the company’s strategic vision and its ability to execute its sustainability agenda effectively.

As the largest sustainability-linked term loan in the Asia Pacific region this year, the facility sets a benchmark for future transactions in the market. Syngenta’s commitment to sustainable development, combined with its strong financial and operational foundations, positions it as a leader in driving transformative change within the industry while delivering value to its stakeholders.