New ICMA Principles Guidance for Sustainable Bonds

2024-07-10T18:38:00
Other countries European Union
ICMA issues guidance on Green Enabling Projects and creates the new Sustainability-Linked Loans Financing Bonds label
New ICMA Principles Guidance for Sustainable Bonds
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July 10, 2024

Key aspects

  • The Principles introduce a new category -Sustainability-Linked Loan Financing Bonds- for bonds whose proceeds are allocated to finance sustainability-linked loans adhering to the Loan Market Association's sustainability-linked loan principles.
  • The four fundamental components of Sustainability-Linked Loan Financing Bonds align with the Green Bond Principles and are the use of proceeds, the selection process and evaluation of sustainability-linked loan portfolios, the management of proceeds, and reporting.
  • Additionally, the Principles offer guidance to elucidate the criteria that 'green enabling' projects must meet to be financed by funds procured through the issuance of green bonds.
  • 'Green enabling' projects, while not overtly green, are essential for the value chain of green projects that yield a distinct environmental advantage.
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July 10, 2024