![]() ![]() Taneja joined the bank last year from ESG ratings agency Sustainalytics, where she was global head of green and sustainable bonds. Capital Monitor spoke to Trisha Taneja, Deutsche Bank’s head of ESG advisory for origination and advisory, about why integrating ESG into leveraged finance will have a positive impact on the race to net zero. One bank keen to capitalise on this development is Deutsche Bank. To give perspective, in 2020, $46bn was raised in global leveraged debt capital markets, with $68bn already raised in 2021. Just $1.9bn of deals were recorded in 2019, according to data firm Dealogic. The market has already grown to $25.2bn of European ESG-linked leverage finance deals recorded in the first half of 2021 from just $6.7bn in all of 2020. Companies that don’t report or integrate ESG into their financing arrangements will find funding options drying up as private market investors and PE sponsors increasingly integrate their own ESG standards.Īs such, rapid growth in the issuance of sustainability-linked leveraged loans and high-yield bonds looks set to make 2021 a transformative year for the asset class. Deals once shrouded in secrecy are now subject to greater scrutiny. Less subject to the scrutiny of public market investors and with fewer resources to dedicate to sustainability reporting, leveraged finance – whereby companies, typically private equity (PE) firms, load up on debt to finance expansion or acquisitions – is a segment of the financial sector that has been slow to integrate ESG standards. Limited partners (LPs) push private equity firms to integrate ESG standards while regulation forces high-yield investors to report on impact of holdings.Greater disclosure, clear target setting and KPI margin ratchets to help drive climate transition in private companies.European ESG-linked leveraged finance volumes jump from $6.7bn in 2020 to $25.2bn year to date, according to data provider Dealogic.Trisha Taneja, Deutsche Bank’s head of ESG advisory, is seeing a huge increase in ESG disclosure in the typically secretive world of leveraged finance. SDG 16, Peace, Justice and Strong Institutions.SDG 12, Responsible Consumption and Production. ![]() SDG 11, Sustainable Cities and Communities.SDG 9, Industry Innovation and Infrastructure. ![]()
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