World Grain - August 2022 - 12

NEWS REVIEW
COFCO signs new sustainability-linked loan
BEIJING, CHINA - COFCO International has signed an
agreement for a new $1.6 billion linked loan with 19 banks
from China, Australia, Europe, Japan, Singapore and the
United States.
This is COFCO International's third sustainability-linked
syndicated loan and brings the company's total sustainabilitylinked
loan commitments to $2.3 billion. The company signed
its first sustainability-linked loan in July 2019, which was the
largest sustainability-linked loan for a commodity trader, and
a second sustainability-linked loan in September 2021.
The lenders have agreed to provide financial incentives in the
form of lower interest rates for COFCO International to achieve
pre-agreed sustainability targets covering the traceability and
socio-environmental screening of its Brazil soy supplies and
Sustainalytics' ESG Management Score. Each sustainability target
will be audited or assessed annually by an independent third party.
Commodity prices, strong demand boost CHS earnings
ST. PAUL, MINNESOTA, US - Higher commodity prices
due to continued strong global demand and increased market
volatility bolstered CHS Inc.'s earnings in the third quarter
ended May 31.
For the quarter, the company posted net income of $576.6
million and revenues of $13.1 billion, which compared with
$273.6 million and $10.9 billion, respectively, in the same period
a year ago.
For the first nine months of the year, CHS posted net income
of $1.2 billion and revenues of $34.4 billion, which compared
with $305 million and $28 billion, respectively, in the same
period of 2021.
" Global grains and oilseed market demand remained strong
throughout the third quarter, " said Jay Debertin, president and
chief executive officer of CHS Inc. " Decreased global supply
due to geopolitical factors, supply chain disruptions and
market volatility also contributed to increased earnings. I am
proud of our team's continued dedication to delivering superior
value for our farmer-owners and customers in this unprecedented
global market.
" The ongoing war in Ukraine has resulted in significant
Cargill breaks ground on canola plant in Canada
REGINA, SASKATCHEWAN, CANADA - Cargill on July
19 broke ground to mark the start of construction on its new
$350 million canola processing plant in Regina, Saskatchewan.
The new facility will have an annual production capacity of
1 million tonnes and will support the growing global demand
for canola products.
The new Regina plant will be Cargill's second canola processing
facility in Saskatchewan and third in Western Canada.
Cargill, which first announced plans to build the facility in
April, anticipates the project to be completed by 2024.
Jeff Vassart, president, Cargill Canada, said: " We see strong
12
uncertainty and contributed to ongoing volatility across global
energy markets. We are leveraging our US refineries to reliably
meet the energy needs of CHS customers. We continue
to invest on behalf of our owners in infrastructure, supply
chain capabilities and innovative technology that is driving
operational improvements and efficiency gains throughout
our expansive network. And while logistical challenges and
inflationary pressures linger, CHS remains well positioned to
continue to maximize value for our member cooperative and
farmer-owners. "
In the Ag segment, pretax earnings of $273.7 million for
the third quarter of fiscal year 2022 represent a $133.6 million
increase versus the same period a year ago.
Margins increased significantly in the oilseed processing
business, driven by strong meal and oil demand, CHS Inc. said.
Robust global demand and increased market volatility resulted
in higher commodity prices and improved earnings
across most of its Ag segment businesses.
In nitrogen production, pretax earnings of $178.2 million
for the third quarter of fiscal year 2022 represented a $131.6
million increase versus the same period a year ago.
potential in the growth and competitiveness of the canola processing
industry and look forward to helping farmers across
Saskatchewan access the increasing market demand. "
Saskatchewan Premier Scott Moe, who was at the groundbreaking
ceremony, added, " Our government is grateful for
Cargill's investment in Saskatchewan and further supporting
sustainable supply chains around the world. The investment
will enhance our agricultural sector profile by bringing welcomed
jobs and increased value-added production, and bolster
Saskatchewan's position of becoming a global canola
crush powerhouse. "
August 2022 / World Grain / www.World-Grain.com
In May, COFCO released its 2021 Sustainability Report,
which included the following highlights:
* $3.9 million revenue generated from 670,000 decarbonization
credits (CBios) from RenovaBio program.
* Developed a Diversity Committee in Brazil where the
company employs over 7,000 staff, offering training to
over 70% of its managerial positions.
* 5.4% decrease on water intensity of its industrial operations;
definitive action to address the findings of its
global water risk assessment.
* 5.5% reduction in absolute GHG emissions, including
through 3.4% decrease in the energy intensity of its industrial
operations.
* Participation in the shipping industry's Getting to Zero
Coalition for cleaner fuels and the Sea Cargo Charter for
standardized emissions reporting.
http://www.World-Grain.com
World Grain - August 2022

Table of Contents for the Digital Edition of World Grain - August 2022
