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Shining a light on green loans - Updated guidance

  • Ireland
  • Banking and finance

23-02-2021

We previously published our two part briefing titled “Shining a light on green loans and sustainability linked loans – Overview of the key features”, copies of which are available here and here. In our briefing, we examined the ‘Green Loan Principles’ (the “GLP”) and the accompanying ‘Guidance on Green Loan Principles’ (the “GLP Guidance”) and the ‘Sustainability Linked Loan Principles’ and the accompanying ‘Guidance on Sustainability Linked Loan Principles’.

On 11 February 2021, the Loan Market Association together with the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association published updated versions of the GLP and the GLP Guidance, copies of which are available here and here. The main changes are as follows:

  • the updated GLP now includes social risks as one of the categories to consider during project evaluation; and
  • the updated GLP Guidance now includes a section describing how borrowers should seek to mitigate adverse environmental and social impacts associated with the implementation of proposed projects.

It is clear that the green and sustainable agenda is here to stay from a finance perspective particularly in light of the recent announcement that the European Central Bank is to establish a climate change centre. It will be interesting to see how the establishment of this centre impacts on finance transactions.

For further information, please contact:

Ann Kilbane, Senior Associate, Banking & Financial Services - AnnKilbane@eversheds-sutherland.ie

Natalie Purcell, Senior Associate, Banking & Financial Services - NataliePurcell@eversheds-sutherland.ie

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.