Syngenta Group (HK) Holdings Company Ltd has successfully secured a USD 4.5 billion syndicated sustainability-linked term loan facility. The funds will be directed toward refinancing and general working capital, in alignment with Syngenta’s sustainability priorities announced in April 2024, which integrate sustainability into the company’s strategic focus.
Structured as a three-year and five-year facility, the loan matches the size of Syngenta’s first syndicated loan in 2022 and stands as the largest sustainability-linked loan in the Asia-Pacific region this year, according to LSEG LPC. The loan was heavily oversubscribed, attracting over 40 banks from various jurisdictions and reaching 2.6 times its initial size of USD 3 billion.
The facility was arranged with the support of a consortium of banks, including Agricultural Bank of China Ltd. Hong Kong Branch, Bank of China (Hong Kong) Ltd., China Construction Bank (CCB) Corporation Hong Kong Branch, Credit Agricole Corporate and Investment Bank (CIB), DBS Bank Ltd., and Industrial and Commercial Bank of China (Asia) Ltd.
Syngenta’s Core Sustainability Priorities
Syngenta Group’s sustainability strategy is built around four key areas: increasing agricultural productivity with minimal environmental impact, regenerating soil and nature, enhancing rural prosperity, and operating sustainably. These priorities are supported by a commitment to regenerative agriculture, which aims to improve soil health, protect biodiversity, and tackle climate change while enhancing farm productivity.
Higher Yields, Lower Impact
The company seeks to improve agricultural productivity through sustainable technologies, integrating concepts like “safe by design” in crop protection products and adopting innovations such as predictive breeding and digital agriculture. By 2030, Syngenta aims to train 18 million farm workers annually in safe product use, connect 100 million hectares of farmland to its CROPWISE digital platform, and implement the Portfolio Sustainability Framework across its crop protection business.
Regenerate Soil and Nature
Syngenta supports the adoption of regenerative practices, such as no-till farming and precision application of inputs, to boost soil health and biodiversity while addressing climate impacts. The company is investing in research to refine these approaches for diverse farming ecosystems. By 2030, the goal is to implement regenerative practices on 50 million hectares of farmland and ensure 85% of seed production utilizes these methods.
Also read: GEF Approves $68M to Combat Biodiversity Loss, Land Degradation and Climate Change
Improve Rural Prosperity
To empower smallholder farmers, Syngenta provides access to digital tools, training, inputs, and financial resources. Programs like the Modern Agriculture Platform (MAP) in China and CENTRIGO in Asia-Pacific aim to increase farm productivity and income. By 2028, the company plans to expand its farmer service centers to 1,000 and improve incomes for supported farmers by 8%. Syngenta also aims to implement a fair labor program across all seed production countries by 2025.
Sustainable Operations
Reducing environmental impact is a cornerstone of Syngenta’s operations strategy. The company has committed to a 38% reduction in Scope 1 and 2 emissions by 2030 compared to 2022 levels. It also aims to establish a Scope 3 emissions target by 2025 and achieve a zero-incident safety record across its global operations. Syngenta is further working to foster an inclusive workplace by ensuring pay equity and narrowing the gender pay gap annually.
This syndicated loan underscores Syngenta Group’s focus on sustainable agricultural innovation, reflecting its dedication to creating value while addressing global challenges in farming and food security. By securing a US$ 4.5 billion sustainability-linked loan, the company strengthens its commitment to advancing productivity, enhancing soil health, and improving rural prosperity through sustainable practices. Syngenta’s clear sustainability priorities, which focus on regenerative agriculture, operational efficiency, and reducing environmental impact, position it as a key player in shaping the future of agriculture. Through its strategic investments and ambitious targets, Syngenta continues to support farmers, communities, and the environment, furthering its efforts to build a more sustainable and resilient agricultural sector.
