One step ahead in carbon reduction: Youran’s USD 150m sustainability linked loan
China Youran Dairy Group owns one of the largest dairy farms in the world in terms of output, with a herd size of around 600,000 heads and annual sales of USD 5.6 billion. It is also an integral part of majority shareholder Inner Mongolia Yili Industrial Group, which sits among the world’s top-5 dairy producers. Working with Rabobank, Youran received its very first sustainable development loan amounting to USD 150 million.
USD 150m
Sustainability Linked Loan
91
large-scale modern dairy farms
583,000
dairy cow herd
3
world-leading dairy cow breeding bases
15
feed mills and forage grass plantation bases
Making strides for a more sustainable world
In the two years since Youran Dairy implemented its dual-carbon strategy in 2022, the company already manage to achieve 12 breakthrough milestones in the entire supply chain from grass to milk, for low-carbon and sustainable development. These achievements include raising cows with low-carbon emission genes, building the first zero-carbon factory in the domestic feed industry, establishing the first low-carbon dairy farm in China; developing the industry's first tradable Verified Carbon Standard (VCS) carbon asset farm, and launching the country's first ruminant carbon-reducing and productivity-enhancing feed.
But Youran has its sights on even stronger sustainable transformation in the dairy world. Partnering with Rabobank, Youran committed to a USD 150 million Sustainability-Linked Loan (SLL), a type of financing granted to companies along with sustainable key performance indicators (KPIs) that they have to realise. For this particular SLL, Youran’s targets include reducing their emissions by intensity, reducing their packaging for their ruminant farming solution business, and also increasing their sourcing of deforestation-free certified soybean meal.
“This landmark sustainability linked loan demonstrates Rabobank’s ambitions to support the sustainability transition of our clients in China and across the globe, as well as to do our part to harness a sustainable future for food and agriculture.”
Contributing to a better world
As a global leader in food and agriculture banking, Rabobank is committed to supporting its clients in achieving sustainable development transformation goals, making it the ideal partner for Youran's very first SLL, which also marks its majority shareholder Yili’s first foray into sustainable development financing.
Youran has made significant progress in implementing effective measures to reduce carbon emissions, improve recycling and lessen the environmental impact of its supply chain. This landmark SLL reflects the collaboration between our two companies in supporting sustainable development both in China and the rest of the world, helping to create a better future for generations to come in the fields of food and agriculture.
About Youran Dairy
Youran Dairy is the world's largest raw milk supplier and was listed on the Hong Kong Stock Exchange on June 18, 2021 (stock code: 9858.HK). The company's business covers the entire upstream dairy industry chain from breeding, forage grass, feed to dairy farming, and has achieved a leading position in all business segments. Youran Dairy is also China's largest supplier of specialty raw milk, China's largest supplier of ruminant feed, China's largest supplier of alfalfa, and China's largest dairy cow breeding enterprise. It owns Jumuc.com, the largest trading center for the dairy farming industry chain in China.
