The Asian Development Bank (ADB) signed a US$100 million loan agreement with Swiss coffee trading giant Ecom designed to strengthen climate resilience within the conglomerate’s coffee supply chain in Asia.
According to ADB, Ecom Agroindustrial Corporation and its subsidiary, Ecom Agroindustrial Asia Private, investments and programming resulting from the loan are expected to affect more than 60,000 smallholder coffee farmers in India, Indonesia, Papua New Guinea and Vietnam.
Those countries account for nearly 30% of the world’s green coffee production.
In addition to supporting Ecom’s “working capital requirements,” the financing is expected to be used for operating expenses for extension services — such as training, certification support, research and development — plus sustainability pilot projects.
The loan was designed to meet social loan standards created by the Loan Syndications and Trading Association, a membership organization for the corporate loan industry. According to ADB, the social loan has been validated by a third party, Det Norske Veritas, as a “certified social loan.”
While specific repayment terms of the loan were not disclosed, the partnership includes a technical assistance grant to enhance gender equality within Ecom’s coffee supply chain. In PNG, the grant will focus on empowering women in decision-making roles, reducing gender-based violence and increasing access to resources.
“Safeguarding coffee farmer livelihoods and resilience in the face of climate change is crucial for maintaining the stability of one of the world’s most significant agricultural supply chains,” ADB Director General for Private Sector Operations Suzanne Gaboury said in an announcement of the deal. “This partnership with Ecom underscores ADB’s commitment as the region’s climate bank to promoting sustainable agricultural practices and enhancing the productivity and resilience of smallholder farmers across Asia and the Pacific.”
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