Ethical Lending Sweeps Into Europe’s Leveraged Loan Market
- ESG-linked loans for junk firms are eight times more than 2020
- Privately-owned leveraged companies need to disclose ESG data
Photographer: DAniel Roland/AFP/Getty Images
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Lenders to sub-investment grade companies in Europe are seeing a surge in the number of loans where the interest rate is linked to sustainability targets.
Deals worth more than 25 billion euros ($29.9 billion) that came to market this year will pay less if the borrower hits environmental, social and governance goals -- or more if they miss. That’s an eight-fold jump from less than 3 billion euros for the whole of last year, data compiled by Bloomberg show.