Social revolvers are the feelgood hit of the summer; more firms should get involved

By Mike Turner
04 Aug 2020

Canny loans bankers have devised a social revolving credit facility structure that links a portion of a borrower’s debt directly to Covid-19 era relief spending. It’s a structure that won’t take the markets by storm on what is likely the eve of global recession but ESG-minded investors should still push hard for the companies they own to consider this new type of funding.

Suez, the French utility, has signed a €100m due 2022 social revolving credit facility. It is the first of its kind to be syndicated.

The structure is similar to a green loan in that it has clearly defined use of proceeds. Unlike a green loan, the use of proceeds ...

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