Ant Completes China Tech Sector’s First ESG-Linked Loan Deal

  • Interest rate depends on borrower meeting renewable goals
  • Similar loans to companies are growing quickly across Asia

The Ant Group headquarters in Hangzhou, China.

Photographer: Qilai Shen/Bloomberg
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Ant Group Co. has completed the first sustainability-linked loan arrangement in China’s tech sector.

The Chinese fintech company spun off from Alibaba Group Holding Ltd. has arranged a sustainability-linked revolving credit line with French bank BNP Paribas SA, according to a statement Monday. Sustainability-linked loans (SLLs) have interest rates that change depending on if corporations are able to meet certain environmental goals.