9fin's Tightening the Screws on Sustainability-Linked Financing Frameworks Video
•2 min read
How do you know if an issuer is gaming their sustainability-linked issuance?
Without a detailed analysis of the various aspects of the accompanying financing framework, you don't.
In this video, ESG Analyst Daniel Power provides insights into how 9fin evaluates sustainability-linked financing frameworks.
It covers important topics such as materiality, target ambitiousness, second-party opinions, margin ratchets, and callability.
Financing arrangements that tie sustainability objectives to coupon payments have become commonplace in high-yield and leveraged finance.
However, as quality concerns arise accompanied by increasing regulatory scrutiny, identifying and ensuring that the sustainability-linked debt in your portfolio is credible is becoming ever more important.