ING Dives into Loans That Link Interest Rates to ESG

More companies could soon sign on to a new loan structure where their interest rate is determined by their sustainability performance.

After making what it said was a first-of-its-kind loan to health technology company Royal Philips last month, Amsterdam-based lender ING Groep NV has signed two new bilateral loans involving a unique payback structure, placing a borrower’s sustainability performance at the forefront, Gerro Goedhuis, head of ING syndicated finance said on April 25. The bank would not disclose the names of the borrowers or specific rates.

Another Western European borrower has appointed ING for a syndicated loan with similar pricing ...