Use-of-proceeds provision

Capital markets - sustainability - loans.

A provision in a loan agreement relating to the use of the proceeds of the borrowing, especially in relation to green and sustainable projects.

ESG factors are influencing borrowing organisations of all sectors and sizes

"Gustavo Brianza, MD of ESG Advisory at NatWest, explained that most banks are waking up to the opportunities: 'Many treasurers may feel they’re not looking to access finance on a scale that brings this up, but most banks are offering sustainable and green loans.

So that might involve a use-of-proceeds provision, which includes green projects, and private placements can also be accessed, so I don’t see the size of the business or the deal as being a barrier to adopting a sustainable finance strategy.'”

The Treasurer online - 13 June 2022.

See also

• Capital market
• Climate Transition Finance Handbook
• ESG
• Green bond
• Green Bond Principles
• Green Loan Principles
• International capital market
• Issuer
• Loan Market Association
• MD
• Paris Agreement
• Provision
• Sustainability
• Sustainability bond
• Use of Proceeds instrument