KPI-linked bilateral loans
Sustainable financing linked to ESG-related key performance indicators (KPI)*
Many companies are in the process of implementing their own sustainability strategies but are not yet in a position to invest in designated sustainable projects that are aligned with the EU Taxonomy. Using a selection of specific ESG performance indicators as a benchmark, sustainability goals can be integrated into financing for general corporate purposes.
In the case of KPI-linked bilateral loans, defined sustainability targets and deadlines are agreed upon between the company and Commerzbank, specifying the progress the company must make towards achieving the targets and within what timeframe. The loan term can be up to five years. If the borrower fails to meet the targets, the interest rate is increased until the agreed targets are reached. Accordingly, the interest rate can be reduced if the borrower meets the corresponding targets ahead of schedule. This financially incentivises borrowers to pursue sustainable business practices.
Possible KPIs can include, for example, cutting CO2 emissions, replacing fossil fuels with wind or solar energy, and also lowering the incidence of workplace accidents.
Speak to your corporate client advisor or contact us directly.
Further information on our sustainable investment loans
*This offer is only valid for customers in Germany and/or accounts managed in Germany