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Company & Organisation News - 05/03/2018

Vigeo Eiris provides second party opinion for the first Corporate Sustainability Bond in Asia issued by Tropical Landscapes Finance Facility

This inaugural transaction will support the financing of a sustainable natural rubber plantation on heavily degraded land in Indonesia.

Tropical Landscapes Finance Facility (TLFF) is a Government of Indonesia supported initiative launched in 2016 and facilitated by United Nations Environment, World Agroforestry Centre, ADM Capital and BNP Paribas. Finalised on February 26, 2018, the US$ 95 million operation on the sustainability bond market will fund PT Royal Lestari Utama (RLU), an Indonesian joint venture between France’s Michelin and Indonesia’s Barito Pacific Group for sustainable natural rubber plantations in Jambi, Sumatra and East Kalimantan provinces.

In a total plantation size of 88,000 hectares, an estimated 34,000 ha will be planted in rubber, while the rest will be left for conservation, restoration and community partnership programs. According to TLFF, the project is designed to enhance the livelihoods of about 50,000 local people and create 16,000 fair-wage jobs, while the plantation will function as a buffer zone to stop further land speculation and encroachment in the Bukit Tigapuluh National Park, which is of particular importance for emblematic species such as Sumatran elephants, tigers and orangutans. The project involves collaboration with WWF, which has worked with Michelin and RLU to set aside remaining High Carbon Stock and High Carbon Value forests in the concessions as well as critical wildlife conservation and riparian areas.

This bond has been subject to Vigeo Eiris’ second party opinion. Vigeo Eiris has provided its conclusions on the sustainability credentials and management of the issuance, including its alignment with the Sustainability Bond Guidelines.

More information is accessible on TLFF website:

See TLFF press release



Keywords : Green bonds