Ant Group Co. has completed the first sustainability-linked loan arrangement in China’s tech sector. The Chinese fintech company spun off from Alibaba Group Holding Ltd. has arranged a sustainability-linked revolving credit line with French bank BNP Paribas SA, according to a statement Monday. Sustainability-linked loans (SLLs) have interest rates that change depending on if corporations are able to meet certain environmental goals, reports Bloomberg.
Ant and BNP Paribas declined to disclose the size of the credit facility. The deal is the first-ever sustainability-linked loan in China’s technology sector, according to BNP Paribas China.
Although China likes to tout its status as one of the world’s biggest issuers of green bonds, sustainability-linked loan volume among Chinese firms has grown at a slower pace compared to regional peers. Australia and Singapore were the top markets for SLLs in 2021, according to Bloomberg-compiled data.