Clifford Chance

Clifford Chance advises Commonwealth Bank of Australia on country's first sustainability-linked syndicated inventory financing for Viterra

Leading international law firm Clifford Chance has advised the Commonwealth Bank of Australia (CBA) and a syndicate of nine banks on a syndicated A$800 million sustainability-linked agricultural inventory borrowing base facility for Viterra, one of Australia's leading grain companies. This marks Australia's first syndicated inventory financing structure to tie sustainability performance targets to the origination of domestic, sustainably grown grain.

The transaction was led by partner Mark Gillgren who was supported by associates Isabella Bogunovich and Rubin Trehan.

Mark said, "We are proud to bring our extensive global experience leading complex sustainability-linked finance transactions to this landmark transaction for Commonwealth Bank of Australia. Merging international and Australian best practice in a high-profile syndicated domestic deal, the emergence of this new bankable financing structure for agricultural inventory can serve as a benchmark for other large-scale sustainable finance solutions in the Asia Pacific region."

Designed to drive better sustainability outcomes for the Australian and international agriculture sectors, the new facility supports sustainable farming practices among local growers by linking Viterra's cost of capital to its performance against agreed sustainability targets throughout its supply chain over a four-year period. This includes the domestic promotion of the International Sustainability and Carbon Certification (ISCC) standards and progression of global non-deforestation efforts via the purchase of sustainable crop imports. The facility has already helped Viterra purchase A$2.4 billion worth of grain from more than 8,000 Australian growers.

The latest deal follows Viterra's successful establishment of two international sustainability linked facilities across its global network. Clifford Chance acted on both of these earlier financing transactions.