Knowledge (XXG)

Green lending

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988:, structured a revolving credit facility (RCF) for the Italian power utility A2A in a finance deal valued at 400 million euros. The syndicated loan availed itself of a margin mechanism based on two parameters: the performance of two selected KPIs (waste processing capacity and the volume of renewable energy sold in the wholesale market, emphasizing the focus of the A2A Group on the 1303: 62:
in the UK issued Green Loan Principles to ensure any green loan is used for eligible green projects. This includes stating that this must be clearly articulated in the finance documents along with the expected environmental benefits, which must be assessed, quantified, measured and reported by the
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In April 2017, Unibail-Rodamco-Westfield put in place a green loan of €650Mn with a banking syndicate led by Lloyds Banking Group as sole co-ordinator and green co-ordinator. This was the world's first 'sustainability linked loan', having a margin linked to ESG Key Performance Indicators.
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and aims to reduce the impact on the environment of new lending activities. It includes green bonds (debt), green loans (often linked to a specific project) and sustainability-linked loans (typically tied to sustainability performance objectives).
91:. Both facilities coupled the interest rate of the loans to the company's sustainability performance, either by reference to an external sustainability ratings, or Key Performance Indicators agreed with the syndicate banks. By June 2018, 55:. This usually meant financing the building of environmentally sustainable or friendly buildings or enterprises. The green lending initiative appear to have been taken by the lenders as opposed to borrowers. 894:
The loan requires the Pennon Group to meet ESG/Sustainability objectives and key performance indicators based on an ESG Index issued by independent ratings organisation,
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reported that ING Group had closed 15 similar deals where the bank would lower the cost of borrowing by between 5% and 10% based on the company's ESG rating provided by
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New credit facilities allow CMS to reduce its interest rate by meeting targets related to environmental sustainability, specifically renewable energy generation
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The cost is linked both to targets on green investments and to progress made on sustainability initiatives.
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score for Polymetal improves, the interest rate for the loan will be decreased. Conversely, if the
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Partially index-linked to the environmental, social and corporate governance impact of the company.
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Price-adjustment mechanism based on the continuous reduction of AVANGRID's emission intensity.
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If the targets are reached on all scores, the interest rate goes down —and vice versa.
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borrower. The list of projects that qualify as green is based on the list that the
1196:"Philips agrees €1bn loan with interest rate linked to sustainability performance" 247: 68: 44: 768: 84: 1040: 900:
Pennon Group receives a reduced margin on the loan if targets are achieved
1310: 1104:"Green Loan Principles to Guide Environmental and Sustainability Finance" 938:
If the ESG rating goes up, the interest rate goes down - and vice versa.
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Sustainability indicator has been independently verified by the agency
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The loan's interest rate is benchmarked to a sustainability rating from
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If the ESG rating goes up, the interest rate goes down —and vice versa.
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Extended its maturity period until 2023 (open to a possible extension)
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Sustainability indicator will be independently verified by the agency
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Sustainability indicator will be independently verified by the agency
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If the ESG rating goes up, the interest rate goes down—and vice versa.
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Green Lending: Top 10 Reasons Why Banks Lend to Sustainable Buildings
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Green Wombat: Bank of America Commits $ 20 Billion to Green Lending
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If the rating goes up, the interest rate goes down —and vice versa.
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If the rating goes up, the interest rate goes down —and vice versa.
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If the rating goes up, the interest rate goes down —and vice versa.
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If the rating goes up, the interest rate goes down —and vice versa.
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If the rating goes up, the interest rate goes down—and vice versa.
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criteria for the planned use of funds. It is part of the wider
1273:"BBVA signs new sustainable loan in Italy with A2A | BBVA" 1248:"The green and sustainability loan market: ready for take-off" 1222:"Going Greener Can Get You Cheaper Loans at This Dutch Bank" 273:
Over four years with the possibility of an additional year.
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Philips's sustainability performance and rating provided by
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Meeting KPIs results in a reduction in margin paid to banks
51:(March 2007, $ 20 bn) started dedicating financing toward 597:/ KPI: Part of Sales linked to subsidiaries certified by 1318: 996:). The solicited ESG rating was provided annually by 757:
score deteriorates, the interest rate will increase.
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ESG rating in the pricing of the loan determined by
1089:"Credit Agricole closes first two U.S. Green loans" 158:
Individual KPIs linked to environmental performance
1169:"ING and Philips collaborate on sustainable loan" 1338: 1143:"Green Loans Sprout as Philips joins Unibail" 8: 16:Lending dependent on environmental criteria 1345: 1331: 87:arranging a sustainability-linked loan to 984:In September 2018, five banks, including 101: 65:International Capital Market Association 43:Starting in 2005 major US banks such as 1031: 603:Incentive scheme linked to the two KPIs 7: 1299: 1297: 47:(July 2005, $ 1bn over 5 years) and 1317:. You can help Knowledge (XXG) by 14: 1220:Hirtenstein, Anna (4 June 2018). 1194:Holder, Michael (21 April 2017). 1102:Tallat Hussain (March 22, 2018). 1039:Hardyment, Richard (2024-02-02). 1301: 83:URW/LBG was shortly followed by 1: 1015:Green money (disambiguation) 53:sustainable entrepreneurship 75:ESG ratings and green loans 1400: 1296: 1091:. Reuters. April 26, 2018. 746:Sustainability improvement 628:Syndicated credit facility 583:Syndicated credit facility 518:Sustainability Improvement 484:Sustainability improvement 373:Sustainability improvement 338:Sustainability improvement 301:Sustainability improvement 267:Sustainability improvement 857:General corporate purpose 706:General corporate purpose 675:on 50 ESG linked criteria 668:General corporate purpose 631:General corporate purpose 586:General corporate purpose 549:General corporate purpose 465:Casino Guichard Perrachon 444:General corporate purpose 407:General corporate purpose 227:General corporate purpose 190:General corporate purpose 155:General corporate purpose 1369:Environmental economics 1118:"URW green disclosures" 1042:Measuring Good Business 428:Red ElĂ©ctrica de España 60:Loan Market Association 1313:-related article is a 589:ESG score provided by 1252:Environmental Finance 1045:. London: Routledge. 32:sustainable investing 966:Purchase of Aircraft 114:USD equivalent ($ m) 1289:. 3 September 2018. 998:Standard Ethics Aei 332:Bilateral term loan 671:Scores granted by 1326: 1325: 1275:. 29 August 2018. 1052:978-1-003-45773-2 982: 981: 1391: 1374:Environmentalism 1347: 1340: 1333: 1305: 1298: 1291: 1290: 1283: 1277: 1276: 1269: 1263: 1262: 1260: 1258: 1243: 1237: 1236: 1234: 1232: 1217: 1211: 1210: 1208: 1206: 1191: 1185: 1184: 1182: 1180: 1165: 1159: 1158: 1156: 1154: 1139: 1133: 1132: 1130: 1128: 1114: 1108: 1107: 1099: 1093: 1092: 1085: 1079: 1074: 1068: 1063: 1057: 1056: 1036: 990:circular economy 102: 1399: 1398: 1394: 1393: 1392: 1390: 1389: 1388: 1379:Ethical banking 1354: 1353: 1352: 1351: 1295: 1294: 1285: 1284: 1280: 1271: 1270: 1266: 1256: 1254: 1246:Roumpis, Nick. 1245: 1244: 1240: 1230: 1228: 1219: 1218: 1214: 1204: 1202: 1193: 1192: 1188: 1178: 1176: 1175:. 19 April 2017 1167: 1166: 1162: 1152: 1150: 1149:. 20 April 2017 1141: 1140: 1136: 1126: 1124: 1116: 1115: 1111: 1101: 1100: 1096: 1087: 1086: 1082: 1075: 1071: 1064: 1060: 1053: 1038: 1037: 1033: 1028: 1020:Ethical banking 1006: 908:September 2019 709:ESG Score from 634:ESG Score from 552:ESG Score from 447:ESG Score from 441:Syndicated loan 410:ESG Score from 230:ESG Score from 211:Barry Callebaut 140:Unibail Rodamco 123:Use of proceeds 77: 67:uses to define 49:Bank of America 41: 17: 12: 11: 5: 1397: 1395: 1387: 1386: 1384:Green politics 1381: 1376: 1371: 1366: 1364:Activism stubs 1356: 1355: 1350: 1349: 1342: 1335: 1327: 1324: 1323: 1306: 1293: 1292: 1278: 1264: 1238: 1212: 1200:Business Green 1186: 1160: 1134: 1109: 1094: 1080: 1069: 1058: 1051: 1030: 1029: 1027: 1024: 1023: 1022: 1017: 1012: 1005: 1002: 980: 979: 976: 973: 967: 964: 961: 958: 955: 952: 947: 943: 942: 939: 936: 929: 926: 923: 920: 917: 914: 909: 905: 904: 901: 898: 896:Sustainalytics 892: 889: 886: 883: 880: 877: 872: 868: 867: 864: 861: 858: 855: 852: 849: 846: 843: 838: 834: 833: 830: 827: 820: 817: 816:Syndicated RCF 814: 811: 808: 805: 800: 796: 795: 792: 789: 786: 783: 782:Syndicated RCF 780: 777: 774: 771: 766: 762: 761: 758: 755:Sustainalytics 751:Sustainalitics 747: 744: 741: 738: 735: 732: 729: 724: 720: 719: 716: 713: 711:Sustainalytics 707: 704: 701: 698: 695: 692: 687: 683: 682: 679: 676: 673:Sustainalytics 669: 666: 663: 660: 657: 654: 649: 645: 644: 641: 638: 632: 629: 626: 623: 620: 617: 612: 608: 607: 604: 601: 591:Sustainalytics 587: 584: 581: 578: 575: 572: 567: 563: 562: 559: 556: 554:Sustainalytics 550: 547: 544: 541: 538: 535: 530: 526: 525: 522: 519: 516: 513: 510: 507: 504: 501: 496: 492: 491: 488: 485: 482: 479: 478:Bilateral loan 476: 473: 470: 467: 462: 458: 457: 454: 451: 445: 442: 439: 436: 433: 430: 425: 421: 420: 417: 414: 412:Sustainalytics 408: 405: 402: 399: 396: 393: 388: 384: 383: 380: 378:Sustainalytics 374: 371: 368: 367:Syndicated RCF 365: 362: 359: 356: 350: 346: 345: 342: 339: 336: 333: 330: 327: 324: 321: 316: 312: 311: 308: 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1025: 1021: 1018: 1016: 1013: 1011: 1010:Green economy 1008: 1007: 1003: 1001: 999: 995: 994:decarbonation 991: 987: 977: 974: 972: 968: 965: 962: 959: 957:not indicated 956: 954:not indicated 953: 951: 948: 946:December 2019 945: 944: 940: 937: 934: 930: 927: 924: 921: 918: 915: 913: 910: 907: 906: 902: 899: 897: 893: 890: 887: 884: 881: 878: 876: 873: 870: 869: 865: 862: 859: 856: 853: 850: 847: 844: 842: 839: 836: 835: 831: 828: 825: 821: 818: 815: 812: 809: 806: 804: 801: 798: 797: 793: 790: 787: 784: 781: 778: 775: 772: 770: 767: 764: 763: 759: 756: 752: 748: 745: 742: 740:Bilateral RCF 739: 736: 733: 730: 728: 725: 722: 721: 717: 714: 712: 708: 705: 702: 699: 696: 693: 691: 688: 685: 684: 680: 677: 674: 670: 667: 664: 661: 658: 655: 653: 650: 647: 646: 642: 639: 637: 633: 630: 627: 624: 621: 618: 616: 613: 611:February 2018 610: 609: 605: 602: 600: 596: 592: 588: 585: 582: 579: 576: 573: 571: 568: 566:February 2018 565: 564: 560: 557: 555: 551: 548: 546:Bilateral RCF 545: 542: 539: 536: 534: 531: 528: 527: 523: 520: 517: 514: 512:Bilateral RCF 511: 508: 506:Not disclosed 505: 503:Not disclosed 502: 500: 499:LafargeHolcim 497: 495:December 2017 494: 493: 489: 486: 483: 480: 477: 474: 471: 468: 466: 463: 461:December 2017 460: 459: 455: 452: 450: 446: 443: 440: 437: 434: 431: 429: 426: 424:December 2017 423: 422: 418: 415: 413: 409: 406: 404:Bilateral RCF 403: 400: 397: 394: 392: 389: 387:November 2017 386: 385: 381: 379: 375: 372: 369: 366: 363: 360: 357: 354: 351: 348: 347: 343: 340: 337: 334: 331: 328: 325: 322: 320: 317: 314: 313: 309: 307: 303: 300: 297: 295:Bilateral RCF 294: 291: 288: 285: 283: 280: 277: 276: 272: 269: 266: 263: 261:Bilateral RCF 260: 257: 254: 251: 249: 246: 243: 242: 238: 235: 233: 229: 226: 223: 220: 217: 214: 212: 209: 206: 205: 201: 198: 196: 192: 189: 186: 183: 180: 177: 175: 171: 168: 167: 163: 160: 157: 154: 151: 148: 145: 142: 139: 136: 135: 131: 128: 126:Objective/KPI 125: 122: 119: 116: 113: 110: 107: 104: 103: 100: 98: 94: 90: 86: 81: 74: 72: 70: 66: 61: 56: 54: 50: 46: 38: 36: 33: 29: 28:environmental 26:dependent on 25: 21: 20:Green lending 1319:expanding it 1308: 1281: 1267: 1255:. Retrieved 1251: 1241: 1229:. Retrieved 1225: 1215: 1203:. Retrieved 1199: 1189: 1177:. Retrieved 1172: 1163: 1151:. Retrieved 1146: 1137: 1125:. Retrieved 1121: 1112: 1097: 1083: 1072: 1061: 1041: 1034: 983: 681:Three years 349:October 2017 315:October 2017 278:October 2017 82: 78: 58:In 2018 the 57: 42: 22:refers to a 19: 18: 971:Vigeo Eiris 933:Vigeo Eiris 824:Vigeo Eiris 700:Switzerland 636:Vigeo Eiris 595:Vigeo Eiris 509:Switzerland 449:Vigeo Eiris 248:Gas Natural 221:Switzerland 184:Netherlands 69:Green Bonds 45:Wells Fargo 1358:Categories 1153:12 January 1127:12 January 1026:References 769:CMS Energy 723:April 2018 686:April 2018 648:March 2018 169:April 2017 137:April 2017 1257:4 October 1231:4 October 1205:4 October 1179:4 October 978:10 years 960:Singapore 888:Term loan 871:July 2018 860:ESG Score 799:June 2018 765:June 2018 727:Polymetal 662:Singapore 401:Singapore 244:July 2017 207:June 2017 132:Duration 120:Loan type 85:ING Group 1311:activism 1004:See also 941:5 years 903:5 years 866:3 years 841:Generali 837:May 2018 803:Avangrid 529:May 2017 950:Avation 922:Poland 916:PLN2bn 807:$ 2.5bn 773:$ 1.4bn 749:If the 364:Belgium 329:Belgium 282:Abertis 174:Philips 129:Pricing 117:Country 108:Company 89:Philips 39:History 24:lending 1049:  912:Energa 875:Pennon 737:Russia 690:Adecco 656:$ 500m 615:Mapfre 599:B Corp 580:France 570:Danone 543:France 475:France 395:$ 150m 391:Wilmar 319:SocFin 172:Royal 149:France 111:Amount 1309:This 975:Fixed 925:Loan 879:ÂŁ100m 851:Italy 832:2023 731:$ 80m 694:€600m 625:Spain 537:€150m 438:Spain 432:€800m 358:€300m 353:bPost 292:Spain 286:€100m 258:Spain 252:€330m 239:2022 215:€750m 202:2022 164:2022 143:€650m 1315:stub 1259:2018 1233:2018 1207:2018 1181:2018 1155:2022 1129:2022 1047:ISBN 992:and 986:BBVA 963:Loan 919:500 848:2380 845:€2bn 810:2500 776:1400 703:Loan 665:Loan 652:Olam 622:1250 619:€1bn 593:and 577:2500 574:€2bn 469:€50m 323:€15m 181:1170 178:€1bn 105:Date 1173:ING 1122:URW 882:130 854:RCF 697:738 659:500 561:NA 540:164 533:EDF 435:944 398:150 361:354 289:118 255:380 218:870 146:760 1360:: 1250:. 1224:. 1198:. 1171:. 1145:. 1120:. 1000:. 935:. 928:- 885:UK 813:US 794:- 779:US 760:- 734:80 718:- 606:- 524:- 490:- 472:59 456:- 419:- 382:- 355:SA 344:- 326:18 310:- 71:. 1346:e 1339:t 1332:v 1321:. 1261:. 1235:. 1209:. 1183:. 1157:. 1131:. 1106:. 1055:. 891:- 826:. 819:- 791:- 785:- 743:- 521:- 515:- 487:- 481:- 370:- 341:- 335:- 298:- 264:-

Index

lending
environmental
sustainable investing
Wells Fargo
Bank of America
sustainable entrepreneurship
Loan Market Association
International Capital Market Association
Green Bonds
ING Group
Philips
Bloomberg News
Sustainalytics
Philips
Sustainalytics
Barry Callebaut
Sustainalytics
Gas Natural
Abertis
Sustainalytics
SocFin
bPost
Sustainalytics
Wilmar
Sustainalytics
Red Eléctrica de España
Vigeo Eiris
Casino Guichard Perrachon
LafargeHolcim
EDF

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