Global investment firm EQT Group has established the largest sustainability-linked loan facility in Asia to date, securing $4.4 billion to back its latest flagship regional fund.
The transaction represents EQT’s third major sustainability-linked facility in Asia, following its pioneering 2021 facility which also set regional volume records at the time. The newly secured credit line will be deployed to support the closing of investments and manage operational expenses for the BPEA Private Equity Fund IX, which stands as the largest-ever Asia-Pacific-dedicated private equity fund raised to date at $15.6 billion.
The structure of the $4.4 billion facility integrates sustainability metrics directly into EQT’s private equity investment workflow, aiming to drive measurable environmental and social performance across its regional holdings. Under the terms of the loan, EQT will implement tailored sustainability targets and performance metrics aligned with internationally recognised environmental standards across its individual portfolio companies.
As a purpose-driven organisation managing EUR 269 billion in total assets under management, EQT utilizes these financing structures to mandate sustainable growth, operational excellence, and market leadership across its holdings in Europe, the Americas, and the Asia-Pacific region. By tying the cost of capital to verified sustainability milestones, the investment giant aims to establish a repeatable operational framework for large-scale corporate decarbonisation and governance within the private equity sector.
Crédit Agricole CIB acted as a Lender and Joint Sustainability Coordinator to orchestrate the financing facility for the investment firm.
Antoine Rose, Head of Sustainable Investment Banking for Asia Pacific and Middle East at Crédit Agricole CIB said, “EQT’s launch of Asia’s largest sustainability-linked loan establishes a benchmark for other large-scale corporates in private equity and other sectors, enabling them to align their sustainability efforts with global best practices as they pursue their own sustainable development goals.”
