Sustainable Finance

Investors are increasingly looking 'beyond the balance sheet' of fund investments and the asset classes acquired by funds. Our sustainable finance experts can advise on the various approaches to sustainable investing and the greater reporting and transparency requirements around non-traditional financial metrics linked to ESG, including requirements set out in fund constitutional documents and side letters.

Fund finance for ESG funds has become more sought-after and the finance industry has adapted by tailoring the structuring of such financing to meet investor and industry pressures including to protect against "green washing" concerns. For example, financial institutions may require borrowers to act in accordance with certain ESG frameworks and include specific provisions in fund finance documents to require additional reporting and compliance obligations linked to ESG metrics.

Our team works with real estate clients across a full range of sustainable finance matters. Decarbonisation in the real estate sector is becoming a critical focus point for landlords, owners and real estate investors and this will have an impact on design, retrofitting, new technologies and materials, all of which will require a funding commitment and banks are now providing designated green loans to assist.

We have experience assisting with green loans in the real estate sector, which can take many forms, from acquisition finance of green buildings, refinancing of existing indebtedness in respect of green buildings and/or the development/re-development of non-green projects to make them into green assets. The main requirement underpinning these green loans is to utilise the loan proceeds towards green projects and purposes.

There is a perceived risk from 'greenwashing' projects and borrower's ESG commitments, and so it is important that borrowers put green finance frameworks together to track their green utilisation of loan proceeds. In addition, from a legal perspective, the loan documentation will come under increasing scrutiny by all parties to make sure these requirements are adequately documented.

The Islamic finance community is looking at focusing on green finance due to its inherent strength in ethical finance that compliments Sharia law principles. A private sector led initiative, The Islamic Finance and the UN Sustainable Development Goals Taskforce, is taking a leading role within the global Islamic finance industry to highlight the green finance opportunity within this sector.

With our multidisciplinary approach, we can offer sustainable finance advice to clients in the Islamic finance industry. 

Luxembourg was the first jurisdiction in the world to launch a fully dedicated green stock market in September 2016, the LGX. LGX is a platform used by issuers to market green, social and sustainable securities to investors. LGX lists bonds, sustainable and social instruments, funds, indexes and aims to extent to all sustainable financial instruments. Entry on the LGX is restricted to issuers who must comply with mandatory disclosure requirements at issuance as well as ongoing reporting on the listed securities. Investors, which have free and unrestricted access to the documentation relating to a product as well as the use of proceeds of such product, can benefit from increased transparency and are better equipped to make informed decisions on their investments.

TISE offers a TISE Sustainable market segment which is open to issuers which have listed securities on TISE whose proceeds are explicitly for the purpose of financing sustainable businesses, investments or projects generating a positive environmental impact. Our specialist Listing Services team offers exceptional levels of expertise to assist issuers and provides advice and assistance in relation to both the initial listing process and ongoing requirements, to ensure compliance with TISEA's Listing Rules and the continuing obligations applicable to listed issuers.

Ogier Global's Sustainable Investment (SI) Consulting team offers a wealth of knowledge and advice to assist clients in shaping their ESG strategy and operationalise this into investment, lending and project finance approaches.  We work with clients to:

• develop your bank's ESG strategy and policies
• train your talent to become ESG proficient
• translate ESG and impact into your product universe and risk management processes
• conduct measurement and reporting of your ESG performance to align with UN Principles for Responsible Banking, TCFD and more.