Union Bank inks its first sustainability-linked loan aggregating
The total syndicated facility is $1.5 billion with one of the leading trading corporates globally.
Union Bank of India/Reuters
Mumbai: One of the largest Public Sector Banks in India Union Bank of India on Tuesday states that the bank has secured its first sustainability-linked loan aggregating, "overseas loan facility" through its international banking division. The leading bank mentioned that the total syndicated facility is $1.5 billion with one of the leading trading corporates globally. The facilities under this will include three key performance indicators (KPIs) relating to a reduction in greenhouse gas emissions, responsible sourcing of metals, and growing renewable power portfolio, in which KPIs will have to be checked and tested annually by third-party experts. The bank said in a statement, "Under this structure, the interest rate paid by the borrower on the credit facilities will decrease or increase based on the group’s progress on three key performance indicators (KPIs). This facility demonstrates Union Bank of India’s commitment towards climatic changes, the bank said.