Deutsche Bank has launched BASF’s first sustainability-linked payables finance program in Asia, with a focus on its operations in China.
The solution meets global standards and has “been tailored to suit local business requirements.”
The program will support BASF’s activities in China. The solution provided by Deutsche Bank converts BASF’s existing payables finance program “to a sustainability-linked financing for some of its subsidiaries in China, allowing BASF to incentivize its suppliers to adopt sustainable practices.”
The sustainability-related performance of suppliers “will be measured by EcoVadis, a globally recognised supplier sustainability rating platform.”
The rated suppliers are incentivized to “progressively improve their performance to qualify for preferential interest rates.”
Unrated suppliers are motivated to get rated, “encouraging them to transition to sustainable practices.”
The program will enhance the “performance of BASF’s payables finance program through shared value and common goals.”
Ole Matthiessen, Head of Corporate Bank for Asia Pacific, Middle East and Africa and Global Head of Cash Management said:
“We are delighted to partner with BASF on its first sustainability-linked payables finance program in Asia. We are strongly committed to our sustainability strategy and helping our clients find innovative new solutions that not only improve resilience of their supply chains, but also advance their sustainability footprint to future proof their operations. We look forward to continuing to help BASF with its sustainable growth ambitions globally.”
Birka Benecke, Senior Vice President Corporate Treasury at BASF, said:
“With this program, we can deepen our collaboration with our suppliers and strengthen the partnership in the area of sustainability transformation. This also gives us the opportunity to further optimise our supply chains.”
As covered earlier this year, Deutsche Bank is providing Capchase with a €105 million credit facility. Capchase is a “revenue acceleration firm” for Software-as-a-Service (SaaS) companies.
According to Capchase, the financing contributes to the more than $1 billion in combined debt and equity financing it has received since its founding in 2020.
Capchase states that the money is needed as startups in Europe have “surged” by a whopping 50% in 2023. At the same time, VC money has tanked
