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Sustainability-linked loans in Russia: a hot market

When it comes to sustainable lending, the Russian loan market is punching above its weight. Many of Russia’s leading corporates have raised ESG or sustainability-linked loans (in some cases, multiple loans) over the last couple of years, in a trend that continues to rapidly gather pace amidst the increased focus on Environmental, Social and Governance (ESG) matters by regulators, shareholders, investors and wider society.

For many Russian corporates, sustainability-linked loans now comprise an important component of their wider sustainable development strategies and present an opportunity to enhance both their financial and reputational position with investors and customers.

As a product that is still in its relative infancy globally, market practice with respect to sustainability-linked loans continues to evolve across the globe. In this note we provide an overview of the key features of sustainability-linked loans, some of the emerging global trends and how those trends are playing out locally in the Russian market.

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