Green and sustainable finance

Whilst significant steps have been taken in recent years to mitigate the speed and extent of climate change, efforts in this regard need to be accelerated. The transition to a green economy will play a very important role in this process, with the finance industry leading the way.
  • Profile
  • Experience
  • Key contacts

Once a fringe investment, green and sustainable finance principles have risen to become standard practice within global lending markets. As national and regional regulations are starting to come into force (supplemented by voluntary initiatives), we can support you with staying on top of the developments shaping this fast changing and rapidly expanding landscape.

Our international finance team advises borrowers, lenders, issuers, private equity sponsors and investors on all aspects of green and sustainability linked financing, including green and sustainability-linked loans; sustainable, green or social bonds; derivatives and structured finance and the financing of renewable projects.

We advise on the implementation of the LMA's Green Loan Principles and Sustainability Linked Loan Principles (taking account of relevant guidance, such as the LMA's "green buildings" and "retrofit" guidance), and the use of the ICMA's Sustainability Bond Guidelines and the Social Bond Principles. We also assist on navigating regulatory and disclosure requirements. 

Whether the transaction involves a loan for the development of a waste recycling centre, supporting a borrower committed to improving its sustainability credentials or issuing bonds to fund the acquisition of a renewable energy plant, we are well placed to assist.

Our finance group comprises of specialist teams across different sectors meaning we are able to advise on specific green finance initiatives in your particular sector. Examples of how this sector specific approach could help you include:

  • advising Real Estate Finance lenders financing landlords needing to retrofit existing buildings to comply with MEES regulations;
  • advising shipping lenders on the use and implementation of the Poseidon Principles;
  • exploring how the CORSIA carbon offsetting scheme can be used by the aviation industry to qualify for green/sustainability led finance;
  • working alongside lenders in the transport sector to support the Campaign for Better Transport's recommendations for a post COVID green-recovery programme.

Recently we have been supporting clients delivering training sessions on ESG principles and green and sustainable finance in practice. We are also at the forefront of engaging with the sector directly to help develop guidelines including through the following memberships:

  • The Commercial Real Estate Finance Council (CREFC) Europe Assisting on production of a template "Climate-related CRE Lending Due Diligence" questionnaire to ascertain the extent to which borrowers / financed collateral are in line with relevant green/sustainable lending principles and regulations.
  • The Global Maritime Forum Working on the underlying principles of the Global Maritime Forum's new initiative -The Sea Cargo Charter, which encourages commodity traders to publish emissions for each of their cargo ships.

"is excellent and provides a wealth of knowledge across many financing sectors."

Chambers UK 2020

A European bank

Advising on amendments to their template term sheets and facilities to include green finance provisions.

BNP Paribas

Advised on the structuring and documentation for a green loan. The green loan was made available after Vigeo Eiris, an independent international ESG research provider, confirmed compliance with the four core components of the LMA's Green Loan Principles (GLPs). A key part of the financing was the agreement around the green loan infrastructure and the related representation and undertakings. These included discussion around the LMA’s GLPs, the third party verification opinions, the green loan framework, the green loan reporting obligations and the Poseidon principles (a global framework which ensures responsible ship finance portfolios).

Swire Pacific Offshore

Advised a subsidiary of Swire Pacific Offshore in connection with stainability linked loans made to a company that owns and operates state-of-the-art turbine installation vessels. The loan included a margin ratchet linked to the achievement of certain agreed ESG criteria and was certified by CICERO.

Zenobe Energy Limited

Advising Zenobe Energy, one of the UK’s largest independent owners and operators of battery storage, on innovative and strategically significant funding, securing up to £20m of contracted receivables funding from NatWest to support the company’s growth plans in the Electric Vehicle sector.

KfW IPEX-Bank

Advising KfW IPEX-Bank in respect of the $72 million GIEK backed fleet exhaust gas cleaning system retrofit financing for Quantum Pacific Shipping. The deal was named ‘Green Ship Finance Deal of the Year – East’.

An international bank

Advising an international bank on a US$48 million green loan financing.

Peace Boat NGO

Advising Peace Boat on the acquisition and financing of a cruise ship from Royal Caribbean. Peace Boat is a Japan-based international NGO which promotes peace, human rights, and sustainability. Established in 1983, it holds Special Consultative Status with the Economic and Social Council (ECOSOC) of the United Nations (UN).

Green real estate development loans

Advising a newly established fund for residential development loans, including advice on green loans.

An international bank

Advising on a proposed loan to a fund set up to buy office buildings and develop them to make them more energy efficient.

An investment manager

Equity bridge financing for an investment manager dedicated to sustainable investing.

A commercial real estate company

Advising on green bond issues.

A vehicle leasing company

Advising on a sustainable bond issue for a vehicle leasing company based on based on financing pools of electric cars.

Impax Asset Management (Hong Kong) Limited

Assisting the client, an SFC-licensed asset manager, to obtain a waiver from the SFC of a condition imposed on its securities licences.

An international leasing company

Advising on a green loan to finance green railcars.

Lawyer

Archie Campbell Partner

T:  +44 20 7809 2377
M:  Email Archie | Vcard Office:  London

Lawyer

James Collins Partner

T:  +44 20 7809 2687
M:  Email James | Vcard Office:  London

Lawyer

Jeremy Grant Partner

T:  +33 1 44 15 82 69 +44 20 7329 4422
M:  +33 6 85 06 66 46 Email Jeremy | Vcard Office:  London, Paris

Lawyer

Dora Mace-Kokota Partner

T:  +44 20 7809 2325
M:  +44 7769 144 915 Email Dora | Vcard Office:  London

Lawyer

Tammy Samuel Partner and co head of rail

T:  +44 20 7809 2227
M:  +44 7766 991 053 Email Tammy | Vcard Office:  London

Latest news & insights

20 Jul 2021

From Insights

The SFC adopts a firmer approach to ESG funds

In Hong Kong, the city's Securities and Futures Commission issued on June 29, 2021 a circular to management companies of SFC-authorized unit trusts and mutual funds th..

More

print-footer
logo
© Stephenson Harwood LLP 2016. Any reference to Stephenson Harwood in this document means Stephenson Harwood LLP and/or its affiliated undertakings. Any reference to a partner is used to refer to a member of Stephenson Harwood LLP.