LONDON: The Thai seafood supplier that owns Red Lobster Management LLC says it has achieved three of its environmental, social and governance (ESG) targets, triggering lower interest rates on its sustainability-linked bonds (SLB).
Thai Union Group Pcl has met the sustainability goals and therefore is lowering the coupon on bonds maturing in 2026, 2028 and 2031, according to letters seen by Bloomberg.
That’s unusual in the SLB market, where typically issuers pay a penalty for missing targets rather than getting rewarded for meeting them.
It’s a fresh milestone in the burgeoning market for bonds linked to environmental, social and governance goals.
Investors have been watching out for companies that could miss targets in case that jolts bond prices.
That happened when Enel SpA, the first to issue an SLB in 2019, failed to achieve an emissions goal earlier this year. — Bloomberg