Green bonds
Produced in partnership with Jacqueline Heng of Norton Rose
Green bonds

The following Banking & Finance guidance note Produced in partnership with Jacqueline Heng of Norton Rose provides comprehensive and up to date legal information covering:

  • Green bonds
  • What are green bonds?
  • Types of green bonds
  • Green Bond Principles
  • Assurance
  • How green is green?
  • Market development
  • Next frontier and trends

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—key issues for debt capital markets transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

Green bonds are a natural source of financing for issuers who have a financing or refinancing requirement for a green project. There does not currently appear to be a premium for green bonds compared to non-green bonds of the same issuer. Further, an issuer who would use the proceeds to finance projects towards its environmentally friendly programmes (for example, to reduce