Promoting ESG-friendly practices by linking performance to financing terms has become increasingly commonplace – particularly with GPs and subscription credit lines – although often on hard-to-define metrics.
However, the Nabiax data centre platform owned by Asterion Industrial Partners, which is based in Spain but has a significant presence in Latin America, has linked €320 million of project financing against three ESG indicators: increasing the percentage of power generated by renewable energy sources; reducing water consumption; and increasing the number of female employees in the workplace.
If Nabiax meets the goals it has agreed with BBVA, the bank co-ordinating this sustainable financing, it will benefit from more favourable financing terms. If it fails, it will be penalised. However, none of the parties involved have disclosed the agreed targets, the benefits or the penalties related to this arrangement. None were immediately available for comment.