Schneider Electric places first true sustainability-linked convertible

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By Aidan Gregory
17 Nov 2020

Schneider Electric, the French electrical systems company, has issued what many in the market are calling Europe's first true sustainability-linked convertible bond, in which the issuer agrees to pay investors more if it fails to meet pre-agreed environmental, social and governance targets.

The company launched the sale of a €650m six year bond on Tuesday morning.

Unlike green bonds, the proceeds from sustainability-linked debt are not earmarked for specific green projects. Instead, the bond addresses the sustainability of the issuer's entire activities by applying one or more key performance ...

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