PRIMER: green loans in Asia

Author: Karry Lai | Published: 27 Apr 2018

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,...