The three-year revolving loan facility of up to US$65 million to Quadria Capital Fund II is the first of its kind in the global fund finance industry. The facility's borrowing interest rate is pegged to the sustainability performance of the fund, which is measured against a set of ESG performance targets which follows the United Nations' Principles for Responsible Investment (UN PRI).
ING is the first financial institutions globally to launch the concept of a sustainable loan. It collaborated with Philips in 2017 on a €1 billion syndicated loan with an interest rate linked to sustainability performance and rating. To date, ING has completed 4 sustainability improvement loan facilities in Asia and 66 globally.
Quadria Capital is a Singapore-based healthcare focussed private equity firm with AUM exceeding US$1.8 billion and investments in some of the fastest-growing markets in the Asia Pacific region, where there is a substantial demand for affordable healthcare services.
Lead partner Jean Woo comments: "We are delighted to have advised on the world's first sustainable fund financing. Sustainable investment captures the growing attention of asset managers and owners. It is more than investing 'for a better world' but also enhancing risk management. We believe that Asia can contribute a lot to growth in this sector and we are excited to support our client to continue to unlock new business opportunities."
The Ashurst team was led by partner Jean Woo, supported by senior associate Cara Stevens, associate Shen Mei Bolton and trainee Caroline Christian. The New York team comprises partner Mike Neary, counsel Matthew Haist, senior associate Misha Daha and associate Ana Namaki.
