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Green Finance / Treasury & Capital Markets
Louis Dreyfus secures sustainable financing from DBS Bank India
Bank applies SPS solution to allow commodity trader to buy RSPO-certified palm oil
Tom King 15 Feb 2024

DBS Bank India has supported the Indian unit of French-Dutch agricultural commodity trading merchant Louis Dreyfus Company in securing sustainable financing for the procurement of palm oil certified by the Roundtable on Sustainable Palm Oil (RSPO).

The transaction was facilitated through DBS Bank Singapore and was achieved through the implementation of the bank's innovative Supplier Payment Services (SPS) solution.

The SPS solution enables the bank to make early payments on behalf of clients to their suppliers, allowing them to preserve liquidity while reducing cash flow pressures on the suppliers. The solution is entirely digital and tailored to meet the client's specific needs.

In addition, the solution can promote supplier inclusion, enabling the bank's clients to expand their supply chains and diversify their sourcing options.

By enforcing globally recognized standards, the RSPO certification plays a crucial role in promoting sustainability within the palm oil industry and its supply chain. Certified producers undergo regular audits to ensure adherence to these responsible practices.

DBS says the initiative aligns with the bank's broader efforts to enhance sustainable financing and offer solutions that reinforces their clients’ sustainability goals.

“This transaction represents a significant milestone, underscoring the crucial role of sustainable financing in catalyzing positive change. Our innovative SPS solution not only provides scalable and sustainable financing solutions to our clients but also champions responsible sourcing practices and facilitates optimized working capital management,” said Divyesh Dalal, managing director and head of global transaction services, SME and institutional liability business at DBS Bank India.

“By combining financial innovation with a strong commitment to sustainability, we are empowering businesses to make a lasting impact on the environment and society."

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