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Demand to invest in the low carbon transition is growing fast, but strategies are very diverse
Major sectors in leveraged loans are trading down, making shrewd credit selection vital
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Kingspan Group, an Irish insulation maker has signed a €700m sustainability-linked revolving credit facility, with the company becoming the latest in recent weeks to wrap multiple facilities into one bank line.
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Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has launched its $500m borrowing into general syndication, after attracting six banks in the senior phase.
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The ESG capital markets were left reeling on Thursday after a group of banks provided a £1.1bn-equivalent sustainability-linked facility that does not have any key performance indicators included — on the agreement that the borrower will add them within 12 months. Mike Turner reports.
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A spate of UK borrowers have signed loans that use Sonia as the benchmark rate from day one this week, with the consistently tricky transition given some cheer after companies said that the process is fairly simple.
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Carlyle’s credit opportunities fund has provided a full €400m unitranche financing for Infront, after the Swiss sports marketing company opted to switch tracks from its original syndicated loan, launched in April.
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Grosvenor Group, the UK property company, has signed a £1.1bn-equivalent sustainability linked revolving credit facility, while taking the unusual step of not formulating complete key performance indicators before signing.
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