Stuckey, David. "Binder Groesswang Advises Verbund on Placement of World’s First Syndicated Loan Rated According to Sustainability Criteria". CEE Legal Matters. (1545091200)December 18, 2018. https://ceelegalmatters.com/...

Gregory Autin | March 24, 2021

Verbund AG issued the world's first Environmental Social Governance-linked syndicated loan.  Its interest rate is not determined by reference to the financial rating but by reference to a sustainability rating established and assigned by the ESG rating agency Sustainalytics.  If Verbund AG's sustainability rating decreases during the term of the loan, the cost of the loan will rise. However, if there is an improvement in Verbund AG’s sustainability rating, the costs will decrease.

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