Sustainability Linked Loans in Europe

Múnich | Q1 2023

How ESG will influence investment decisions has become an important topic for the private debt industry. An increasing number of managers are no longer relying on their borrowers (typically private equity-owned) to conduct their business more ESG-friendly, but are actively providing financial incentives in their loan agreements for desirable behavior. As part of our numerous ESG initiatives, YIELCO Investments has recently undertaken a comprehensive empirical study on the use of Sustainability-linked Loans by European direct lending managers. The results can be found here: