Companies are tying their loans to measures of do-goodery
Sustainability-linked loans now account for a quarter of green-debt issuance
EARLIER THIS month WSP, a mid-size Canadian consultancy, announced that it had amended the terms of a loan of $1.2bn. What made it unusual was that the interest rate hinges on hitting three targets. The company wants to reduce greenhouse-gas emissions from its operations, increase revenues from green sources, such as renewable energy, and raise the share of women in management. For every goal that it meets (or misses), its interest payments will fall (or rise) by a set amount.
This article appeared in the Finance & economics section of the print edition under the headline “Green paper”
Finance & economics
February 15th 2020- Technology is poised to upend America’s property market
- The IMF undergoes structural reform
- The World Bank loses another chief economist
- Companies are tying their loans to measures of do-goodery
- African countries like their currencies strong
- Looking at the world through the eyes of options traders
- Wage gains for low earners have helped sustain America’s economic expansion
From the February 15th 2020 edition
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