ING’s US$65 Million Sustainability Performance Linked Fund Financing

Ashurst acted as the lead counsel to ING on the provision of the world’s first sustainability performance linked fund financing.

The three-year revolving loan facility of up to US$65 million to Quadria Capital Fund II is the first of its kind in the global fund finance industry. The facility’s borrowing interest rate is pegged to the sustainability performance of the fund, which is measured against a set of ESG performance targets which follows the United Nations’ Principles for Responsible Investment (UN PRI).

ING is the first financial institutions globally to launch the concept of a sustainable loan. It collaborated with Philips in 2017 on a €1 billion syndicated loan with an interest rate linked to sustainability performance and rating. To date, ING has completed 4 sustainability improvement loan facilities in Asia and 66 globally.

Quadria Capital is a Singapore-based healthcare focussed private equity firm with AUM exceeding US$1.8 billion and investments in some of the fastest-growing markets in the Asia Pacific region, where there is a substantial demand for affordable healthcare services.

The Ashurst team was led by partner Jean Woo (Picture), supported by senior associate Cara Stevens, associate Shen Mei Bolton and trainee Caroline Christian. The New York team comprises partner Mike Neary, counsel Matthew Haist, senior associate Misha Daha and associate Ana Namaki.

Involved fees earner: Shen Mei Bolton – Ashurst; Misha Daha – Ashurst; Matthew Haist – Ashurst; Michael Neary – Ashurst; Cara Stevens – Ashurst; Jean Woo – Ashurst;

Law Firms: Ashurst;

Clients: ING Bank;

Author: Michael Patrini