[This is an update, now with the video, of the original news post from the conference day, 20 October.]
Better carbon dioxide efficiency, lower debt cost. This is the simple principle of the sustainability-link loan margin.
”We were thinking how could we contribute to Yara’s sustainable strategy and we found that this could be done,” says Nina Kleiv.
The idea opened the door to looking into other sustainability measures too.
“We discussed diversity, nutrient efficiency …,” says Nina Kleiv, but the standards for measuring these were not yet stable enough for the purpose.
From Yara’s perspective, the sustainability link was preferable over standard green bonds, as it was more flexible while creative strong incentives to produce results – and thus a proof of commitment. According to Nina Kleiv, the banking contacts involved showed good appetite for green transactions.
See also this article on the day’s panel discussion of today’s green financing from the perspective of the banks.