Global investment firm Carlyle’S Global Credit platform has launched a decarbonisation-linked financing programme, providing an incentive for borrowers to reduce greenhouse gas (GHG) emissions or achieve other climate-related targets.
The initiative is among the first decarbonisation-linked financing programmes available in the US private credit market, and represents the latest step in Carlyle’s ongoing efforts to drive progress in energy transition.
Through the program, Carlyle offers a pricing benefit tied to a borrower’s achievement of decarbonisation targets or other tailored climate-related KPIs. Carlyle and participating borrowers will work closely together to assess and monitor appropriate KPIs, while Carlyle’s dedicated ESG team will provide on-going support and expertise to assist borrowers in achieving climate-related goals.
Carlyle has also announced the recent closing of its first two debt financings with decarbonisation-linked terms, in each of which Carlyle served as lead investor and Administrative Agent. These included financings in support of: Morgan Stanley Capital Partners’ buyout of Fairway Lawns, a market leading provider of residential lawncare services in the Southeast United States; and American Industrial Partners’ refinancing in support of its portfolio company The Carlstar Group, an industry leader of specialty tires and wheels.
Both deals included potential pricing reductions related to reducing the intensity of the businesses’ GHG footprints, or other related ESG KPIs.
