Northern European private equity firm Triton Partners has joined the ranks of firms with ESG-linked fund finance facilities. The firm has a secured a €1.455 billion syndicated facility to support the €5.2 billion 2018 fund Triton V.
RBS International acted as lead arranger, facility agent and sustainability co-ordinator, according to a statement from the bank. It committed €332.5 million alongside four other lenders.
This is Triton’s first ESG-linked facility, which will be replicated across the firm’s other funds, said RBS. The statement from the bank does not go into specifics about the KPIs, but does outline the areas covered. These comprise: alignment with Paris greenhouse gas emissions protocol, implementation of an ESG programme, biannual ESG board reviews and water and waste management programmes.
The last two years has seen a glut of ESG-linked fund finance facilities secured by private fund firms. Typically the cost of the facility is linked to a small number of sustainability-centric targets, such as diversity or greenhouse has emissions.
- Further reading: ESG-linked loans in 2022: More ambition, more scrutiny