ECOM and ADB Unite for $100 Million Coffee Climate Resilience Loan
Deal News | Dec 17, 2024 | Asian Development Bank
The Asian Development Bank (ADB) has finalized a $100 million social loan agreement with ECOM Agroindustrial Corporation Limited and its Asia Private Limited sector to bolster the climate resilience of the coffee value chain in the Asia-Pacific region. This financial agreement focuses on supporting over 62,000 smallholder farmers in India, Indonesia, Papua New Guinea, and Vietnam by aiding working capital needs, including inventory management and advances for coffee procurement. Additionally, it backs operational expenses like training and sustainability projects. The loan, certified as a social loan per standards set by the Loan Syndications and Trading Association, is complemented with technical assistance that emphasizes gender equality, especially in Papua New Guinea. This collaboration reinforces ADB's role as a climate bank, targeting agricultural sustainability amidst climate change-induced challenges. Farmers will receive necessary financial stability to embrace regenerative practices, ensuring sustainability and security in coffee production, vital to global supply.
Sectors
- Agriculture
- Finance
Geography
- Asia-Pacific – The article focuses on enhancing the coffee value chain in the Asia-Pacific region, including countries like India, Indonesia, Papua New Guinea, and Vietnam.
Industry
- Agriculture – The article discusses an initiative to enhance the climate resilience of the coffee value chain, which is a part of the agriculture sector.
- Finance – The article involves a $100 million loan agreement, highlighting financial operations and funding structures.
Financials
- $100 million – The total amount of the social loan provided by ADB to ECOM for enhancing the coffee value chain.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank | Lender | Company | A regional development bank established to promote economic growth and cooperation in the Asia-Pacific region. |
| ECOM Agroindustrial Corporation Limited | Borrower | Company | A global supply chain merchant and processor of commodities, focusing on enhancing farmer productivity and resilience. |
| Det Norske Veritas (DNV) | Certifier | Company | An international accredited registrar and classification society that provided a second-party opinion for the social loan certification. |
| Raphale Muel | Head of Sustainable Financing | Person | Represents ECOM's commitment to sustainable development and climate resilience in the collaboration with ADB. |
| Suzanne Gaboury | Director General for Private Sector Operations at ADB | Person | Spokesperson emphasizing the importance of safeguarding coffee farmer livelihoods in the face of climate change. |