Green loans


Produced in partnership with Kathryn Emmett of Slaughter and May , Katie Knight of Norton Rose Fulbright and Rosa Mottershead
Practice notes

Green loans


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

Practice notes
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This Practice Note provides information on green loans and key issues to consider when drafting a green loan agreement. It focuses on the Green Loan Principles (GLP) published by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA).

The Practice Note:

  1. •

    explains what is meant by a green loan

  2. •

    provides an introduction to the GLP and the related guidance (GLP guidance)

  3. •

    explains what the four components are of a green loan, as set out in the GLP, and summarises its guidance on these four components

  4. •

    summarises guidance contained in the GLP and GLP guidance around what can constitute a green loan, reviews and greenwashing, and

  5. •

    provides information on finding precedent wording, including information on the Loan Market Association draft provisions, and drafting tips

What is meant by a green loan?

Green loans are described in the GLP as:

‘…Green loans are any type of loan instruments and/or contingent facilities (such as bonding

Kathryn Emmett
Kathryn Emmett

Professional Support Lawyer Counsel, Slaughter and May, Slaughter and May

Kathryn is a senior knowledge lawyer in Slaughter and May’s London energy, infrastructure and natural resources team. She advises on both financing, commercial contracts and regulatory aspects of projects, with particular experience in power and renewables, as well as emerging technologies such as low carbon hydrogen, and carbon capture and storage.

Kathryn's experience includes advising lenders, sponsors and governments on domestic and international project financings, as well as leading due diligence in relation to project acquisitions and investment company listings. Kathryn also advises in relation to both the support schemes for, and regulation applicable to, the British energy market, as well as reforms affecting it.

Kathryn has an MSC in Energy policy and worked in-house at a United Kingdom renewable energy generation company in a dual role as part of the legal and wind energy development teams.

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Katie Knight
Katie Knight

Norton Rose Fulbright

Katie is a knowledge lawyer in Norton Rose Fulbright's London office, specialising in asset and structured finance with particular expertise in aviation finance.

Within those sectors, Katie has worked on a wide range of finance and leasing transactions, involving export credit financing, cross-border structured financing, all aspects of operating and finance leases, sale and leaseback of aircraft and tax-driven structured financings. Katie has acted for a wide range of clients, including banks and financial institutions, operating lessors and airlines, as well as the European export credit agencies. She has also advised on offshore and shipping finance transactions and on the leasing of rolling stock.

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Rosa Mottershead
Rosa Mottershead

Rosa is a project finance lawyer in Norton Rose Fulbright's London office, with particular experience in renewable energy projects and emerging markets, and a keen interest in sustainable finance. She trained with Norton Rose Fulbright and has over ten years' experience advising on project financings in the UK, Europe, Sub-Saharan Africa and the MENA region. She advises lenders (including multi-laterals and development finance institutions), sponsors and governments on the structuring, financing and contractual arrangements on all types of projects, ranging from small-scale solar PV projects to complex cross-border international financings.

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Jurisdiction(s):
United Kingdom
Key definition:
Loans definition
What does Loans mean?

occupational pension scheme resources may not at any time be invested in an employer-related loan. In accordance with section 40 of the Pensions Act 1995, employer-related loans are: loans to the employer or any such person; shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer; or employer-related investments eg a guarantee or security for obligations of the employer. This does not apply in respect of small self-administered schemes (SSASs) and self-invested pension plans (SIPPs).

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