GLP secures largest sustainability-linked loan in APAC

ING acted as coordinator and GLP’s ESG advisor for the deal.

Global investment manager GLP has secured $868.9m (US$658m), its first sustainability-linked loan (SLL) and the largest in the Asia Pacific.

The three-year revolving credit facility was structured as an SLL tied to GLP’s latest Sustainalytics Environmental, Social and Governance (ESG) Risk Rating. Under the facility, GLP is committed to improving its ESG Risk Rating score which reflects its performance in various ESG metrics.

The loan features a two-tier incentive mechanism where GLP will be entitled to an interest rate reduction when targeted improvements in its ESG performance score are achieved.

ING acted as the Lead Sustainability Structurer and Coordinator for GLP’s first SLL as well as GLP’s sole ESG advisor on its new Green Finance Framework which will cover its future green use-of-proceeds bond and loan issuances. Ten banks participated in the deal.

According to GLP's global treasurer Edwin Tey, the company will used the proceeds of the loan to sustainably enhance its assets and the communities in which the firm works.