Welcome to the September 2020 edition of In the Know, Baker McKenzie's Leveraged Finance newsletter that takes a look at global market trends in various jurisdictions and areas of law relating to leveraged finance and high yield.
Navigating the challenges and opportunities presented by the rapidly growing and evolving financial markets for environmental, social and governance (ESG)-related bonds and loans can be a daunting undertaking. In this issue of In the Know, Baker McKenzie lawyers share their experiences and insights.
FACT: ESG finance requires immediate attention. All market participants urgently need to develop or continue to develop ESG expertise, including, importantly, for ESG-related debt finance activities. Not only are there altruistic reasons to undertake these initiatives, but stakeholders, activists and governmental authorities, among many others, are demanding action.
FACT: ESG finance is here to stay. Urgent environmental, social and governance drivers across all industries and jurisdictions will fuel ESG-related growth into the foreseeable future and beyond, and finance initiatives provide a direct link to fund this growth.
FACT: ESG finance is still in its early days. Protocols are voluminous and confusing, ESG-related products continue to evolve, benefits are (currently) primarily non-economic, and risks remain uncertain.
So what do you need to know? In this issue we set out our top ten tips for ESG debt financings.