Earlier this month, a Canadian consulting organization of medium size WSP published information on the revision of the terms of the loan in the amount of $1.2 billion. The peculiarity was that the interest rate is based on successful achievement of three goals. The company's goal is to reduce greenhouse gas emissions, increase the profitability of green products such as renewable energy, and increase the share of women in management. If each goal is met (or missed), the company will reduce (or increase) its interest rates by this amount.
Such long-term loans are at an increasing level. Bloombergnef Energy Consulting estimates that the first loan was issued in 2017; two years later, it increased to $122 billion. To date, they account for about a quarter of total debt (which is actually) about 1% of global debt. The total volume of the issue does not exceed green bonds, which tie bond proceeds to investments in clean projects. However, newly formed loans are gaining momentum rapidly.
Such long-term loans are at an increasing level. Bloombergnef Energy Consulting estimates that the first loan was issued in 2017; two years later, it increased to $122 billion. To date, they account for about a quarter of total debt (which is actually) about 1% of global debt. The total volume of the issue does not exceed green bonds, which tie bond proceeds to investments in clean projects. However, newly formed loans are gaining momentum rapidly.
