Introducing the sustainability linked loan
The path towards sustainability is a journey. It’s not about achieving perfection, but about making steps in the right direction. We believe these positive actions should be rewarded, as sustainability isn’t just good for society, it’s good business.
Accelerate your sustainability goals
- Align sustainability goals with corporate strategy and financial performance
- Benefit from reduced interest margins when sustainability objectives are met
- Diversification of financing sources for widening of investor base
- Compelling communication opportunity for investors, customers and other stakeholders
How it works
- Financing general corporate purposes whether new or existing corporate facilities
- Link margin-grid to external ratings (Sustainalytics, EcoVadis, Viegeo Eiris); or
- Tie pricing to tailor-made, relevant KPI’s on sustainable performance
- The ESG performance can result in a discount or premium to the loan pricing
- Framework is verifiable, transparent and measurable
Frequently asked questions
Is the sustainability improvement loan only available to companies with a focus on sustainability?
No, this product can benefit every company that would like to improve their sustainable performance as long as transparent objectives are set with board level commitment.
What type of metrics are used to assess sustainable performance?
Third-party ratings agencies look at your ESG performance in relation to industry peers. Tailored KPIs are formulated based on relevant metrics that you already measure such as GHG emissions, amount of water used, % of waste recycled and that are typically found in your company’s CSR report.
What is the pricing impact?
Improvement or deterioration of performance results in a discount/premium to the applicable margin, typically in the range of 5-10%.
How is this documented?
The KPIs are added in an annex or amendment to your loan documentation with a grid stipulating the base line metrics and the future objectives. With performance verification undertaken by your auditor or a third party.
What does the sustainability coordinator role entail?
ING will assist you in defining KPIs and/or liaising with the external rating agency to set up the initial framework. The annual verification can be managed by the admin agent.
ING Bank N.V. does not conduct business or operate branch offices in the United States, and the products described herein are accepted only at offices of ING Bank N.V. located in selected countries outside the United States. Deposit products offered by ING Bank N.V. or any of its subsidiaries are not insured by the U.S. F.D.I.C., the S.I.P.C., or by any other governmental regulator or agency of the United States. This document has been prepared on behalf of ING Bank N.V. solely to provide its clients with general information: it contains basic information concerning individual Wholesale Banking products and related services. Under no circumstances should this document and any of the information contained herein be construed as an offer or solicitation by ING Bank N.V. (whether through its Financial Markets business unit or otherwise) or any of its non-U.S. subsidiaries of any brokerage, trading, underwriting or other capital markets or investment advisory product or service in the United States or to any U.S. person. Securities products and services are offered in the United States or to U.S. persons only by and through ING Financial Markets LLC, a U.S. broker-dealer subsidiary of ING Bank N.V. that is registered with the U.S. S.E.C. Additionally, this document, and any of the information contained herein, does not constitute investment advice or an offer or solicitation for the purchase or sale of any financial instrument, or a commitment, or an offer to commit, to any transaction or financing by ING Bank N.V. or any of its affiliates. Queries concerning these topics should be addressed to the individual business units and/or companies of ING Bank N.V. No offer or solicitation of securities or swap/derivatives-related transactions or services is being made. Any such transaction or service will only be provided by or through an appropriately-licensed entity.