JetBlue signs loan linked to ESG goals
JetBlue has signed on to a new credit facility that is priced according to its performance on environmental and social matters, the first of its kind in the airline industry. The carrier’s US$550m sustainability-linked loan, which was set up by BNP Paribas, gives it a financial incentive to follow through on its public commitment to reduce its carbon footprint. The margin the airline pays will go up or down in conjunction with its environmental, social and governance (ESG) score as determined by Vigeo Eiris, a Paris-based sustainability research group that was recently acquired by Moody’s. So-called “positive incentive” loans such as this one have been rising in popularity, with the market increasing 250% year on year in 2019. Unlike green bonds, these loans do not come with restrictions on how their proceeds can be used. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-24/unaligned/jetblue-signs-loan-linked-to-esg-goals
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JetBlue signs loan linked to ESG goals
JetBlue has signed on to a new credit facility that is priced according to its performance on environmental and social matters, the first of its kind in the airline industry. The carrier’s US$550m sustainability-linked loan, which was set up by BNP Paribas, gives it a financial incentive to follow through on its public commitment to reduce its carbon footprint. The margin the airline pays will go up or down in conjunction with its environmental, social and governance (ESG) score as determined by Vigeo Eiris, a Paris-based sustainability research group that was recently acquired by Moody’s. So-called “positive incentive” loans such as this one have been rising in popularity, with the market increasing 250% year on year in 2019. Unlike green bonds, these loans do not come with restrictions on how their proceeds can be used. <br/>
