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The Latest

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29 November 2021

Happy Hanukka!

26 November 2021

Happy Holidays!

25 November 2021

Severe Criticism from the Danish Data Protection Agency of a Website with a Consent Setup which was found not to be sufficiently clear

8 November 2021

UK introduces a new Regime for screening of Foreign Investment

5 November 2021

Investment Recommendations on Social Media

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The New Danish Lease Act Explained

25 October 2021

The new Danish Act on Court Fees has entered into force

15 October 2021

The Court of Justice of the European Union states that Subsidiaries may be liable for Parent Company infringement of Competition Law

8 October 2021

Issuer’s Disclosure and Reporting Obligations

6 October 2021

Moalem Weitemeyer leaps to the Top 3 in the Mergermarket Legal Advisor League Tables in Q3 2021

20 January 2021

The Role of ESG Financing in the Banking Market - No 2 in a Series of Briefs on Sustainable Financing

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Towards sustainable Bank Financing

The banking sector has dealt with many transitions over the years. EU regulation on sustainable finance is pushing the sector into rethinking its core business – lending money to businesses.

In general, the term ESG finance covers all sustainable, including ‘green’ and ‘social’, finance. Among the most recognized types of ESG loans today you will find green loans and sustainability-linked loans.

Particularly booming in 2019 were the sustainability-linked loans as one of the key products, and new data tells us that this development continued into 2020. Such loans differ from green loans. Sustainability-linked loans can be applied for any sustainable purposes (green or not) - however, an in-built pricing mechanism means that the loan is cheaper if the borrower achieves certain sustainability performance targets.

This briefing note will take a closer look on what green- and sustainability-linked loans are and how banking institutions are applying these loans in their sustainable loan portfolios.

Henning Aasmul-Olsen

Partner

+45 30 37 96 50

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Joakim Holdt

Associate

+45 30 37 96 21

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