In 2017, Amsterdam-headquartered ING Bank issued a EUR 1 billion loan to health technology firm, Philips, creatively linking a flexible interest rate margin to the conglomerate’s sustainability performance and ratings. The deal marked the world’s first ever sustainability-linked loan (SLL), distinguishing the structure from other forms of traditional green finance, including green bonds and green loans, through its offer of much looser restrictions around use of proceeds.
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