BNP Paribas today announced they acted as joint lead sustainability structuring advisor for BPEA’s Sustainability Linked Credit Facility, worth up to $3.2bn, with initial commitments of approximately $1.5bn. This landmark transaction is the largest-ever Sustainability Linked Loan for a private equity fund in Asia.
The financing, which follows the APLMA Sustainability Linked Loan Principles, incentivises BPEA to promote Environmental, Social and Governance (ESG) implementation throughout the investment process. The margin is linked to Sustainability Performance Targets (“SPTs”) focused on gender diversity and climate change, including: ESG risk and opportunity assessments at the investment evaluation stage; greenhouse gas emission reporting and reduction targets at portfolio company level and BPEA level; and building a stronger and more supportive environment for female talent in portfolio companies. Proceeds will be used to support BPEA’s private equity investment platform.
Ms Noemie Peiffer, Head of Sustainable Finance, Capital Markets Group, Global Banking Asia Pacific at BNP Paribas said: “We are incredibly proud of this transaction, which marks an important and innovative new source of funding for sustainable private equity investment.
“As a bank, we are committed to working with spectrum of clients, from private equity to corporates, to guide and advise them on their sustainability journey,” added Ms Peiffer.
Jean Eric Salata, Chief Executive and Founding Partner of BPEA, said: “We hope this pioneering debt facility we have created with the support of BNP Paribas will set a precedent for the private equity industry, not just in Asia but globally. As a longstanding proponent of taking action on ESG, we recognise the correlation between strong, sustainable business practices and value creation. The Facility’s ambitious targets incentivise our Firm and our investee companies to aspire to higher standards while also encouraging long-term thinking on key topics like climate change to drive positive change for the communities in which we operate.”
Founded in 1997, Baring Private Equity Asia (BPEA) is one of the largest private alternative investment firms in Asia, with $34bn of Assets Under Management (AUM).
Kristen Carter Kristen.Carter@asia.bnpparibas.com +852 2909 8821