ESG in Fund Finance: New Principles and Guidance for Structuring and Drafting Sustainability-Linked Loans (SLLs)
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss ESG in fund finance, and specifically how to structure and draft sustainability-linked loans (SLLs) to achieve ESG-related objectives that comply with the new principles and guidance.
Outline
- Why funds and lenders are increasingly including ESG criteria in commercial loans
- Use of proceeds loans and SLLs
- The core components of the SLLP
- SLL Model Provisions: best practices
- Challenges in structuring SLLs
- Mitigating the risk of greenwashing
- What’s next for SLLs?
Benefits
The panel will review these and other relevant issues, including:
- What are the benefits to borrowers and lenders in addressing ESG considerations in a loan transaction?
- What are the LSTA and LMA SLLPs and the guidance that has been published with respect thereto, and what are the key differences?
- What is the LSTA and LMA guidance on drafting SLL-related provisions for U.S. and UK-style credit agreements?
- How to structure ESG in fund finance. For example, what are some sample ESG targets used in fund finance, and how do these vary depending on the type of facility?
- What is the role of the sustainability agent?
- What are the reporting requirements?
- How can the failure to meet performance targets be addressed in the loan documents?
- What is greenwashing and how can it be prevented and mitigated against?
Faculty
Sukhvir Basran
Partner
Cadwalader Wickersham & Taft
Ms. Basran is a partner in Cadwalader's Financial Services Group. Combining her substantial experience as a banking... | Read More
Ms. Basran is a partner in Cadwalader's Financial Services Group. Combining her substantial experience as a banking and finance lawyer, she advises and works with financial institutions on incorporating innovative financing and impact investment structures anchored in rigorous impact outcomes into mainstream transactions. Ms. Basran advises clients on ESG strategies, policies, disclosure and reporting, ESG-related transactions and products as well as integration of ESG into investment processes and systems.
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Katie McShane
Special Counsel
Cadwalader Wickersham & Taft
Ms. McShane represents major banks and financial institutions in the structuring, negotiation and documentation of... | Read More
Ms. McShane represents major banks and financial institutions in the structuring, negotiation and documentation of subscription credit facilities. She also has experience representing investment banks and private equity groups in their role as issuer, underwriter and mortgage loan seller in both public and private securities offerings. Ms. McShane has also represented clients in other asset-backed finance and corporate transactions and has practiced in both London (England) and Dublin (Ireland).
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