Rajashekara Visweswara Maiya’s Post

𝗟𝗼𝗮𝗻𝘀 𝗹𝗶𝗻𝗸𝗲𝗱 𝘁𝗼 𝗘𝗦𝗚 𝗳𝗮𝗰𝗲 𝗼𝘃𝗲𝗿𝗵𝗮𝘂𝗹 𝗯𝘆 𝘂𝗻𝗱𝗲𝗿-𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲 𝗯𝗮𝗻𝗸𝘀 Banks are redesigning corporate loans linked to ESG goals to meet regulations and boost credibility in a growing market. Sustainability-linked loans (SLL), offer cheaper borrowing if companies meet ESG goals like carbon emission reduction or board diversity improvement. LSEG data shows a 36% slump in SLL issuance to $310 billion in 2023, compared to $480 billion in 2022, and 21% decrease in total loan volumes. London’s Loan Market Association has tightened guidelines for lenders structuring SLLs, urging banks and borrowers to publish sustainability elements for public scrutiny. https://okt.to/8rdVBA