ESG Bond Market Splits on Linking Ethical Goals to Nations’ Debt
- SLBs could put investors at loggerheads with future government
- HSBC pushes for step-down coupons, in contrast to Chile debut
Source: Getty Images
This article is for subscribers only.
The fastest-growing type of sustainable debt is proving complicated for the world’s governments.
Chile became the first last month to offer sustainability-linked bonds, which tie interest payments to reaching ethical goals. These have already exploded in use among companies, with sales last year surging over 800% to $108 billion. That’s encouraging other nations around the world to look at them, such as Uruguay, Turkey and Pakistan.