ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE LINKED DEBT INSTRUMENTS

摘要

Systems and techniques for structuring and analyzing a fixed-income security are disclosed. The fixed-income security includes a coupon that provides at least a variable rate of interest payment over a time interval. The variable rate of interest payment may be based at least in part on a set of environmental, social, and governance (“ESG”) goals defined for an issuer over the time interval. A set of ESG values associated with performance of the issuer and corresponding to the set of ESG goals may be reported, independently audited, and used to determine the variable rate of interest payment provided by the security.

主权项

1. A computer-implemented method comprising:
determining whether an entity has accomplished a set of ESG goals associated with a bond within a first time interval, the bond having a current coupon, and if the entity has accomplished the set of ESG goals, automatically adjusting the current coupon rate of the bond to a first coupon rate which is less than the current coupon rate, and if the entity has not accomplished the set of ESG goals, automatically adjusting the current coupon rate of the bond to a second coupon rate which exceeds the current coupon rate; associating a signal with the adjusted current coupon rate; and transmitting the signal.