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Lenders Seek Loans Tied to Borrowers’ Sustainability Performance

  • Bankers want ESG deals even as market lacks standardization
  • ESG loans can help improve companies corporate strategies

More companies may have to include sustainability features when raising funds as lenders in Europe are increasingly seeking loans with terms tied to borrowers’ ESG (environmental, social, governance) track record.

More than half of 40 Europe-based bankers in an informal Bloomberg News survey say more lenders are looking to participate in sustainability-linked deals, in spite of challenges in setting aggressive targets and standardization of ESG ratings. The survey was conducted between Feb. 5 and Feb. 11.