Green loans
Produced in partnership with Kathryn Emmett of Norton Rose Fulbright , Katie Knight of Norton Rose Fulbright and Rosa Mottershead

The following Banking & Finance practice note produced in partnership with Kathryn Emmett of Norton Rose Fulbright, Katie Knight of Norton Rose Fulbright and Rosa Mottershead provides comprehensive and up to date legal information covering:

  • Green loans
  • What are green loans?
  • Green loan principles
  • Use of proceeds
  • Process for evaluation and selection
  • Management of proceeds
  • Reporting
  • Considerations for revolving credit facilities
  • Review
  • Conclusions

Green loans

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for lending lawyers? [Archived].

What are green loans?

This Practice Note considers the green loan market, focusing on the Green Loan Principles (GLP), published by the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA).

Until the development of the GLP (see Green loan principles below), ‘green loans’ has been used as a generic term for any type of loan instruments, the proceeds of which are used to finance or re-finance environmentally sustainable activity. Multilaterals and development banks have been heavily involved in providing green loans to support renewable energy and other projects which reduce greenhouse gas emissions, mostly in emerging markets. The Green Loan Principles are not intended to apply to this type of lending, and are a private sector-led response to increasing demand from borrowers in developed markets for a product which can be easily recognised as ‘green’.

Commercial banks

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