Legal advise about green finance
The use of sustainable financing is growing rapidly in Denmark. Therefore, sustainability is a natural element in our advice to both financing provides and investors.
For “Green Loans”, it is important to clarify which green projects can qualify for such loans and how this can be documented. For “Sustainability Linked-Financing”, it is important to get an overview of the objectives for the company (KPIs) and how fulfillment hereof is documented and verified during the term of the loan.
In the loan documentation, the parties must agree on the regulation, which shall apply in the event that the borrower counters difficulties in meeting the green/sustainable conditions during the term of the loan. It is important that the parties consider these matters very carefully in advance, and at Lundgrens we assist both the financing providers and the borrowers with these negotiations and with incorporating the parties' agreement into the loan documentation.
For “Green Bonds”, we provide guidance, including considerations on structuring the bonds, reporting and verification, and incorporating the sustainability element into the documentation.
Furthermore, it is also important that financial institutions as well as fund managers consider sustainability requirements and fulfilment hereof in the general processes and risk management. In this respect Lundgrens can assist with an overview of the reporting requirements for sustainability reporting under the Disclosure and Taxonomy Regulations.
In this context, we can conduct an analysis on, for example, whether a real estate portfolio or a real estate can meet the requirements necessary to be qualified as a fully or partially sustainable financial product under the Disclosure and Taxonomy Regulations.