Financial products’ structuring in the sustainable financing market

Subject. The article addresses theoretical and practical lessons learned in transaction structuring in the ESG segment. Objectives. The aim is to design a structured product (SP) of sustainable financing (ESG SP), and provide rationale for its effectiveness in investment strategies of responsible investors. Methods. The study employs general scientific research methods through logical, comparative, and statistical analysis in the process of analyzing foreign practice, as well as scientific publications by domestic and foreign authors. Results. Our analysis confirmed the assumption that structuring financial products in the sustainable financing market will increase capital inflows and increase its liquidity, which will have a positive impact on the availability of financial resources for issuers pursuing sustainable development goals. The findings indicate an increased interest in structured ESG products in all three categories against the background of the "merger" of securitized products with ESG products. There is a trend in the development of SP of a "charitable orientation". It is necessary to develop a new ESG index that most accurately reflects the ESG vector of companies as the basis of structured ESG products. Testing the presented ESG SP demonstrated prospects of this tool for responsible investors. Conclusions. In the current financial market environment and the expanding variety of financial instruments, structured ESG products with their inherent advantages and risks will be in demand.