Home / World News / World-saving sustainability-linked loans finally gain ground in Asia

World-saving sustainability-linked loans finally gain ground in Asia

Companies in the Asia-Pacific area are riding a global groundswell in demand for environmental, social and governance (ESG) loans and other feel-good investments

Even though the equity market was opened up for foreign investors immediately after the early 1990s, the norms for foreign investment in debt were released in 1995 and in 1997, Rs 29 crore trickled in

Premium

There is growing acceptance by lenders that companies’ ESG performance translates into better share performance and ultimately better credit risk

Mariko Ishikawa | Bloomberg

3 min read Last Updated : Jun 04 2019 | 8:26 AM IST

A region that’s lagged behind the rest of the world when it comes to socially-responsible financing is beginning to catch up.

Companies in the Asia-Pacific area are riding a global groundswell in demand for environmental, social and governance (ESG) loans and other feel-good investments, with Sydney Airport last month securing the largest syndicated ESG financing in the region.

“There is growing acceptance by lenders that companies’ ESG performance translates into better share performance and ultimately better credit risk,” said Chris Ruffa, managing director for energy and infrastructure at BNP Paribas SA, one of the bookrunners on the A$1.4 billion ($972 million) Sydney

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in