Sustainability Linked Finance

Download or read book Sustainability-Linked Finance written by Ignacio de Calonje and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Sustainability-linked finance is designed to incentivize the borrower's achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument, with over $809 billion issued to date in sustainability-linked loans and bonds. Yet these instruments are still nascent in emerging markets, which represent only 5 percent of total issuance to date. This note shares examples of recent sustainability-linked financing, including several involving IFC in various roles, to highlight how investors can utilize these new instruments in emerging markets and mitigate greenwashing risks.