A new form of green funding sustainability linked loans SLL appears to be taking off in Australasia thanks, ironically, to those otherwise carbon villains, the airport operators.
What sets SLLs apart from green bonds is that the proceeds can be used for general corporate purposes they don’t have to be spent on environmental projects.
Although the exact terms of each SLL vary according to just how committed to reducing carbon emissions borrowers want to be, the pricing can be tied to improved sustainability performance.
So while air travel might not the most obvious poster child for sustainable finance, in Australia and New Zealand...
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