Sustainability-Linked Bonds: Linking Business Strategy with Sustainability

By Beate Dünschede for GSK Stockmann SA, December 01 2020
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  • Sustainability-linked bonds are a new type of debt instrument in the ESG investing scene.
  • The bonds’ features can vary depending on whether the issuer achieves its predefined sustainability objectives.
  • The proceeds deriving from sustainability-linked bonds are not restricted to specific projects and may be used for general corporate purposes.
  • Sustainability-linked bonds complement the range of sustainable debt instruments, such as green and social bonds, but might also become an attractive alternative to standard corporate bonds.
  • The Luxembourg Green Exchange (LGX), the world’s leading platform for sustainable finance instruments, recently recognized sustainability-linked bonds.

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