Green loans are catching on

Author: Lizzie Meager | Published: 1 Aug 2017

A growing number of European corporates are taking out innovative syndicated loans that directly link margins with their progress on sustainability objectives.

Unibail-Rodamco’s €650 million deal in April, thought to be the first green syndicated loan in Europe with such a pricing benefit, kicked off the small but growing trend.

EU-wide policy objectives and the backing of sovereign states – both Poland and France have done their own sovereign green bonds in the past six months – is said to be driving a broader openness to sustainable products among European corporates.

Unibail Rodamco will be assessed on how well it reduces CO2 levels relative to footfall in its shopping centresGreen bonds, while still occupying a relatively small corner of the global financial market, have of course been around a while now. But this latest trend in the private lending market goes one step further than green bonds by tying the commercial...