First of Its Kind Loan: Barclays’ Borrower Pays Less if Sustainability Targets Are Met
by Jennifer Hermes
Jun 18, 2018 11:20 AM ET
Originally published on Environmental Leader
In a first in the US, a company has entered into a syndicated sustainability-linked revolving loan. CMS Energy and its subsidiary, Consumers Energy, have entered into $1.4 billion revolving credit facilities from Barclays, the sole Sustainability Structuring Agent on the loan. This means that CMS can reduce its interest rate on the new credit by meeting targets related to environmental responsibility, CMS says. Sustainability-linked loans are products that allow issuers to demonstrate their commitment to sustainability, according to Barclays.
