ESG-Linked Loan Boom Hit by Pandemic Push for Short-Term Funds
- Volumes this year have slumped because of Covid-19 impact
- Issuance has soared to $275 billion since first deal in 2017
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The global boom in loans to companies with interest rates pegged to their performance on sustainability goals is stalling this year as the pandemic forces more borrowers to seek short-term funds.
With two months of the year to go, the $77 billion of issuance so far in 2020 is slightly more than half of the amount raised for all of 2019 after Covid-19 forced companies and lenders to focus on more immediate and straightforward financing solutions.