ESG Downgrade Sparks New Penalty in $200 Billion Bond Market
- Poland’s PKN Orlen pays higher coupon after MSCI score cut
- Sustainability-linked bonds tie interest to meeting ESG goals
An employee examines pipework at a PKN Orlen SA oil refinery in Plock, Poland.
Photographer: Bartek Sadowski/BloombergThis article is for subscribers only.
The sustainable bond market has passed a milestone.
PKN Orlen SA, a petroleum refiner based in Poland, started paying creditors a higher coupon on two local-currency sustainability-linked bonds earlier this year after MSCI Inc. cut its environmental, social and governance rating, according to payment records reviewed by Bloomberg News.