DBS stepped in to address this challenge by fostering a close relationship with Viterra’s senior management. Demonstrating a deep understanding of agricultural trade flows and expertise in sustainable trade finance, especially for palm oil and its related products, DBS proposed a tailored solution. They provided Viterra with a US$50m trade finance facility, with pricing linked to the sustainability performance of its supply chain in palm oil and PKE, a by-product of palm oil extraction used as livestock feed. This facility included documentary trade and account receivables purchase (ARP), incentivising Viterra to improve the sustainability of its supply chain by linking financial benefits to environmental performance.

This initiative took place during a critical period when global emphasis on sustainability and responsible sourcing was intensifying. The operations primarily involved activities in Asia, a key region for palm oil production and trade. Key players in this endeavour included Viterra’s senior management, the bank’s relationship managers and sustainability teams from both organisations.

By securing a trade finance facility that incorporated sustainability metrics, Viterra successfully integrated PKE into its global environmental KPIs. This partnership not only supports Viterra’s sustainability goals but also demonstrates the effectiveness of combining financial and environmental strategies to address global challenges. The collaboration highlights the importance of aligning financial solutions with sustainability commitments, paving the way for future initiatives in responsible commodity sourcing.