ETC Group expands sustainability-linked agricultural loan to $600 million

ETC Group (ETG), a major agricultural supply chain manager, has expanded its sustainability-linked loan from $394 million to $600 million. The facility was originally arranged by FMO and the Trade and Development Bank (TDB) Group, alongside partners such as DEG, FinDev Canada, the OPEC Fund for International Development, and Proparco.

The expansion follows additional commitments from FinDev Canada and the inclusion of new development finance institutions, including the Asian Development Bank, Cassa Depositi e Prestiti, Finnfund, Impact Fund Denmark, and OeEB. The financing is intended to support ETG’s working capital and strengthen agricultural value chains, primarily in Africa, with additional support for operations in Asia.

The loan utilizes a sustainability-linked structure where interest margins are tied to ETG’s performance regarding environmental and social targets. These include reducing greenhouse gas emissions, combating deforestation, and providing training to smallholder farmers, with a specific focus on increasing participation among women and youth. ETG aims to provide services to one million African smallholder farmers to improve production, crop quality, and climate resilience.