The sustainability-linked format generally refers to any transaction with adjustments to its financial characteristics depending on the company’s performance on sustainability-related performance measures. Companies typically pursue such transactions to capitalize on perceived increased demand, but also to benefit from cost savings. Certain principles apply to the structuring of transactions in this format, regardless of the sustainability topics chosen as the focus. Execution of these transactions varies based on the type of financing.

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Sustainability-Linked Format: Deep Dive into Sustainability-Linked Loans and Similar Format Transactions

  • Aaron Franklin

摘要

The sustainability-linked format generally refers to any transaction with adjustments to its financial characteristics depending on the company’s performance on sustainability-related performance measures. Companies typically pursue such transactions to capitalize on perceived increased demand, but also to benefit from cost savings. Certain principles apply to the structuring of transactions in this format, regardless of the sustainability topics chosen as the focus. Execution of these transactions varies based on the type of financing.