Environmental, social and corporate governance linked debt instruments
AssigneeThomson Reuters Global Resources
InventorAndré Chanavat
Life of this patent
Estimating the term…
Abstract
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.
Claims29
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.
A computer-implemented method comprising:
- associating a set of Environmental, Social, and Corporate Governance (ESG) goals with a security by an electronic computer system having a processor and a memory storing instructions that cause the processor to automatically perform said associating, the set of ESG goals associated with an entity and a first time frame, the security providing a first cash flow dependent upon accomplishment of the set of ESG goals over the first time frame;
- determining whether the entity accomplished the set of ESG goals over a first time interval;
- and
- adjusting automatically by the processor, the first cash flow based on the determination of whether the entity accomplished the set of ESG goals over the first time interval.
A computer-implemented method comprising issuing a bond from an issuer in exchange for value, the bond providing 1) a first cash flow associated with the issuer achieving a set of ESG goals and 2) a second cash flow associated with a maturity date of the bond, wherein the first cash flow is adjusted automatically based on a determination of whether the issuer achieved the set of ESG goals.
A system comprising:
- a data store;
- a server including a processor and memory storing instructions that, in response to receiving a request for access to a service, cause the processor to compute a fee amount for publishing, to the data store, a set of values corresponding to a set of ESG goals associated with an issuer of an ESG linked security.
A fixed-income security comprising:
- a first cash flow payment dependent at least in part upon whether an entity accomplishes a set of pre-defined ESG goals associated with a set period of period of time;
- and
- a second cash flow payment not dependent upon whether the entity accomplishes the set of pre-defined ESG goals, the second cash flow payment payable at a maturity term of the fixed-income security.
Dependencies are inferred from the claim text.