Sustainability-linked silences doubters with equity debut

Jenisch, Jan of LafargeHolcim from Adobe 18Nov19 230x150
By Aidan Gregory, Mike Turner
19 Nov 2020

French companies Schneider Electric and LafargeHolcim pushed the fledgling sustainability-linked bond asset class to new levels this week, helping quell vocal concerns from some investors that having an unspecified use of proceeds means the structure has no place in ESG portfolios, write Mike Turner and Aidan Gregory.

Schneider Electric took the crown for the most innovative sustainability-linked trade of the week, after the A3/A- rated company exported the structure to the equity capital markets on Tuesday.

“It’s unique,” said an equity-linked banker involved in structuring what was the first ever sustainability-linked convertible bond.

The borrower raised €650m ...

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