Green loans allow companies to finance initiatives that
have environmental benefits. Some innovative green loan deals
in Asia include Wilmar and ING's $150 million bilateral
revolving loan and New World Development's $459 million hybrid
green bond/loan facility. While green bonds have taken off in
recent years, their loan counterparts are still at a nascent
stage of development. But the financial community sees the
potential for these to develop as momentum builds for
environmentally sustainable projects in various industries.
What's the level of demand? There is increasing pressure on
companies to report on their environmental impact. This has
taken the form of government policy such as the Task Force on
Climate Related Financial Disclosures (TCFD) recommendations
and from investors, in the form of shareholder legal action.
Another example of increased attention to companies'
environmental impact are trackers on environment, social and
governance (ESG) disclosures, such as Institutional Shareholder
Services' E&S QualityScore,...