PE giant PAG has become the latest Asian GP to embrace sustainable finance. The Hong Kong-headquartered firm said this morning it has established “the first [loan] to be supported by a sustainability-linked financing framework in the Asian private equity market”.
The three-year subscription facility is backed by unfunded capital commitments from a diversified group of “blue-chip investors” and will help fund its PE strategy. The interest rate will be linked to sustainability performance targets and drop upon the achievement of “specific ESG investments”, which are verified by an independent third party, according to the firm. BNP Paribas, Societe Generale and Standard Chartered Bank acted as joint sustainability coordinators.
PAG’s move echoes that of peer Baring Private Equity Asia, which secured Asia’s first ESG-linked credit facility last year. PAG, which had been planning an IPO earlier this year, is reportedly seeking $9 billion for its latest flagship.