Finance
Sustainable Finance Boosted by New Rules on ESG-Linked Bonds
- Industry group releases guidelines on bonds linked to targets
- Likely to open sustainable bond market to more borrowers
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Guidelines released Tuesday are set to encourage more borrowers to issue bonds tied to general environmental targets, rather than specific projects, following massive growth of similar deals in the loan market.
The International Capital Market Association has published principles for sustainability-linked bonds, offering guidance for issuers that want to raise environmentally friendly debt with terms tied to specific ESG goals. Issuance of similar loans has soared to more than $200 billion since first introduced in 2017, data compiled by Bloomberg show.