Oil platform pumping oil out of the ground near Lubbock , Texas in West Texas with wind turbines all around in a huge wind farm one of the worlds largest wind farms in sweet water , Texas

Episode 26 — Energy & Infrastructure: Will the Market Sustain its Interest in Sustainability-Linked Bonds?

May 25, 2021
The popularity of sustainability-linked bonds offers companies new capital raising options in the debt markets.

The interest in and availability of ESG-focused investments has exploded in recent years. Last year, the International Capital Markets Association published its Sustainability-Linked Bond Principles, allowing the creation of debt products that hold issuing companies accountable to achieving independently certified sustainability or ESG objectives. Unlike “green bonds”, which require proceeds to be used strictly on green projects, sustainability-linked bonds focus on outcomes rather than specific investments. And, so far, investors are eager to utilize them. So, who is likely to pursue this type of bond? Are companies getting more favorable pricing? Is the new US political and regulatory environment accelerating demand?

In this episode of Connected With Latham, Lauren Anderson speaks with fellow Houston partners David Miller and Trevor Lavelle about the growth of green financing and the rapid uptake of sustainability-linked bonds in the debt capital markets, as well as prospects for the future of such bonds in the fast-evolving energy and infrastructure sector.

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