Finance
U.S. Sustainability-Linked Loans Are 292% More Than All of 2020
- Growth seen in both investment-grade and high-yield markets
- Demand is expected to increase for the debt product: JPMorgan
This article is for subscribers only.
U.S. companies are increasingly converting their borrowings to sustainability-linked loans as the asset class finally takes off in the world’s biggest economy.
U.S. loans with terms tied to environmental, social and governance targets have jumped to about $52 billion in volume this year through May 21, a 292% increase compared with all of 2020, according to Bloomberg data. Such debt was already picking up last year before Covid-19 struck due to growing investor appetite for sustainable themes.