MUFG prices world's first ESG-linked issuance for Sydney Airport

It is also the world’s first US Private Placement issuance.

Mitsubishi UFJ Financial Group (MUFG) has priced the world’s first environmental, social and governmental (ESG)-linked issuance with two-way pricing for Sydney Airport, according to a news release.

It is also the world’s first ESG-linked US Private Placement (USPP) issuance, as there have been no issuances from borrowers in the USPP marker with an ESG linkage, where coupon payments can vary two-ways.

Sydney Airport has now priced a $398.8m (A$600m) transaction, with tenors from 20 to 30 years, including a 20-year ESG-linked tranche. As part of the tranche, coupons can vary up or down periodically depending on the airport’s performance against its sustainability metrics over time.