A credit facility with green credentials

Is this the future of subscription credit facilities?

Dutch banking group ING has arranged what it believes to be the world’s first capital call facility with an interest rate linked to sustainability performance. You can read the full story from sister title PEI‘s Asia reporter Alex Lynn here.

The $65 million facility has been taken up by Singapore-based manager Quadria Capital for its second fund. The fund’s portfolio will be assessed annually and if it meets certain sustainability targets will see its interest rate reduced. What we don’t know is the magnitude of the potential rate reduction, although the bank described it as “meaningful”.

Elsewhere on Private Funds CFO, our second report from the annual conference of the British Private Equity & Venture Capital Association: the CIO of venture firm Beringea outlining what the industry needs to do to address the lack of diversity among its workforce.

Email prepared by Toby Mitchenall.