Sydney Airport makes first ESG-linked issuance in USPP market

The increasing importance of sustainability in the aviation sector has been highlighted by Sydney Airport making the first ESG-linked issuance into the three-decade old US Private Placement (USPP) market.MUFG, acted as joint lead placement agent and ESG structuring agent, on February 13, when it priced what the lender said was the world’s first ESG-linked issuance with two-way pricing and the world’s first ESG-linked USPP issuance for Sydney, Australia’s largest airport. In a statement MUFG said that the market for sustainable financing is developing rapidly in Australia, with a range of sustainability-linked loan issuances occurring throughout 2019, including Australia’s first multi-bank ESG-linked loan,