Mercon Coffee Group has secured a $450m sustainability linked senior secured revolving credit facility led by financial services provider Rabobank.

Mercon is reported to be the first commodity trading company in the US to secure sustainability-linked credit facility and also the only coffee-specific sustainability facility globally.

Rabobank Trade and Commodity Finance Agri global head Karel Valken said: “This transaction is an embodiment of our mission of Growing a Better World Together.

“As the world’s leading food and agricultural financier, we’re always looking for opportunities to address crucial sustainability issues.”

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Linked to key sustainability initiatives measured by performance indicators, the pricing on this facility is aligned with Mercon’s long-term strategy of building a better coffee world.

The initiative is in line with Rabobank’s global sustainability focus through its Kickstart Food programme.

Based on the sustainability performance indicators, the pricing on the facility could be discounted or have a premium applied.

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The facility will be used for Mercon’s sustainability initiative or programmes such as the LIFT sustainability production programme or Seeds for Progress Foundation.

"This transaction is an embodiment of our mission of Growing a Better World Together."

On the other hand, the premium will be distributed to similar programmes sponsored by Rabobank as the sustainability structuring agent and ING Capital and BNP Paribas as sustainability coordinators.

Rabobank North America Markets head Nader Pasdar said: “We couldn’t be happier with the results of this transaction. The company now has a solid group of 13 relationship banks, including ING Capital LLC, Macquarie Bank, Credit Suisse (Switzerland), UBS Switzerland, BNP Paribas and International Finance Corporation.

“This transaction is a great example of how aligning our sustainability principles with that of our clients can ultimately bring financial benefits to them.”