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Sustainability-Linked Financing
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Sustainability-Linked Financing Intro
Sustainability-Linked Financing is on the rise. Corporates are looking for opportunities to increase value and drive impact by accelerating investments in sustainable and social developments.
You can leverage your ESG Rating:
- To assess how you stack-up versus peers
- As a KPI within ESG-linked loans or credit facilities
- To support debt issuance programs
Sustainability-Linked Loans
Sustainability-Linked Financing Table

Purpose
Create a time-bound financial link (via the interest rate) between a borrower's ESG target and its achievement.

Use of Proceeds
General-purpose use

Interest Rate
Industry rate changes based on success or failure in achieving ESG-linked target.

Borrower Industry
Across industries

Benefit to Issuer/Borrower
Potential for lower interest rate if target is achieved

Benefits to Investor/Lender
Potential for higher interest rate if borrower does not meet target

Size of Market
~USD 100 Billion
*Total for 2019 Source: MSCI ESG Research
Source: 2020 ESG Trends to Watch, MSCI ESG Research, January 2020
Featured Content - Second-Party Opinions
Featured Content
Second-Party Opinions
Over the last few years, sustainable debt financing – a previously niche market - has experienced remarkable growth. Along the way, there has also been a rapid expansion in the objectives and definitions of sustainable financing instruments.
Sustainability-Linked Financing Related Content
Related Content
ESG Rating - Private Company
Assessment
ESG has become a leading indicator for success and is increasingly a factor in assessing private companies.
Explore MoreResources for Issuers
Access our issuer communications portal for information on your company’s ESG Ratings report and data.
Learn MoreSecond-Party Opinions
Over the last few years, sustainable debt financing – a previously niche market - has experienced remarkable growth. Along the way, there has also been a rapid expansion in the objectives and definitions of sustainable financing instruments.
Read MoreThe Many Categories of ESG-Labeled Bonds
This interactive dashboard will provide an overview of the main categories of ESG bonds.
Learn More