Allen & Overy Advised Ant Group on Record-breaking ESG-linked Loan Conversion in Asia Pacific
Ant Group has successfully converted its US $6.5 billion syndicated loan facility (the "Facility") into a syndicated sustainability
Allen & Overy Advised Ant Group on Record-breaking ESG-linked Loan Conversion in Asia Pacific
Ant Group has successfully converted its US $6.5 billion syndicated loan facility (the "Facility") into a syndicated sustainability-linked loan (SLL) with the assistance of legal counsel from Allen & Overy. This marks the largest such conversion in the Asia Pacific region for 2022 and was completed in November of that year.
Ant Group achieved this significant milestone with the completion of its first syndicated sustainability-linked loan (SLL), which was also the first of its kind in China's internet sector.
The SLL incorporates a tiered two-way pricing mechanism, where adjustments to the interest margin are tied to predetermined sustainability performance targets (SPTs). The SPTs are in line with Ant Group's ESG strategies, which aim to achieve net-zero by 2030 while offering a secure, reliable, diverse, and open ecosystem to drive mutual growth with its partners.
Beijing-based partner Yvonne Ho led a team of over 10 lawyers across six jurisdictions from Allen & Overy, who provided support to Ant Group.
“The successful conversion marked a milestone for the Asia Pacific market. We are proud to have advised Ant Group on its landmark transaction, drawing on our deep expertise and leadership in ESG and sustainability matters,” Yvonne Ho said.
A consortium of 20 financial institutions across Asia, Europe, China, and the US provided support for the transaction.