Stephen Loce’s Post

Sustainability-linked loans (where borrowers can be awarded an annual reduction on their interest rate based on their sustainability performance) now make up half of all loans structured within the EU 💸🌱 However, the US is curiously falling behind on these numbers 📉 Why is this, and what makes SLLs appealing even in a US setting, or what should credit investors take into account when structuring them? Read all about it in the blog post that Stephen Loce and I wrote and thats up on our website now! 💡

🌎 Sustainability-linked loans (“SLLs”) have rapidly gained traction in the global financial landscape. For US credit managers, it’s increasingly important to adopt a strategic approach to EU SLL issuance. 📌 Read our blog by Puk van Rees and Stephen Loce for our advice to credit managers: https://okt.to/ZrUSCO #PrivateDebt #ESG #SustainabilityLinkedLoans #SLL #SustainableFinance #CreditManagers

Investors are becoming more concerned about ensuring loan agreements hold borrowers to well-defined ESG targets #lendingconsiderations #esgstrategy #bankingandfinance #legaladvice

If you've missed it, here it is! Did you know that 73% of lenders have an ESG lending strategy in place? Our partner Ben Wilkinson spoke to IFLR for an interesting article on lenders looking for clarity on ESG strategies. Read the full article here:

Investors are becoming more concerned about ensuring loan agreements hold borrowers to well-defined ESG targets #fundingsolutions #esgstrategy #bankingandfinance #legaladvice

European policymakers are rediscovering the value of securitisation, and its potential to support the continued growth of private market. In his latest Private Debt Investor column, Jiri Krol explores this shift and its implications for the private credit market. Key points: ·     Securitisation seen as tool for boosting SME lending and infrastructure investment ·     CLOs suffer from disproportionate treatment under Solvency II ·     Asset managers' growing role in origination overlooked Read the full article (£) to understand the changes needed to unlock securitisation's full potential. https://lnkd.in/eJ9UwqCH #PrivateCredit #Securitisation #FinancialRegulation

The global private credit market has reached a significant milestone, surpassing $3 trillion in assets under management. This growth is driven by corporate lending, which makes up 60% of the market, with the remaining 40% comprising asset-backed, real estate, and infrastructure debt. The Alternative Credit Council’s research highlights a substantial increase in fresh capital invested by private credit lenders, rising by 64.2% in 2023. https://lnkd.in/gC9S93ut

Moody’s predicts ongoing boom in European private credit #business #finance #fintech #lending #investment #alternativecreditinvestor #aci #Moody #privatecredit https://lnkd.in/eUtxPgX5

Growing bifurcation between higher- and lower-risk private credit issuers #business #finance #fintech #investment #investors #aci #alternativecreditinvestor https://lnkd.in/em5uAQM4

Many thanks to R3 Association of Business Recovery Professionals Recovery News for its coverage on Grant Thornton UK LLP's ESG Lenders Survey which highlights that ESG credentials are an increasingly important factor for mid-market businesses seeking to access capital. Speaking to R3, Partner Christopher McLean comments: "What we are finding on the restructuring side with banks that are asked to support a company through a restructuring period, is that they look at the business plan, management team and market environment and all of those aspects, but ESG is increasingly also a factor that is considered when deciding whether to continue supporting a business." Director Jon Bramwell adds: "If a mid-market company is trading with a large corporate, the government, or a local government entity, for example, there's a good chance they'll have to satisfy certain considerations with regards to ESG. If they're not able to do that, they run the risk of failing to win or renew that contract, which speaks directly to the profitability of a business, its capacity to service its borrowing obligations and credit risk." For the full interview, click here: https://lnkd.in/e6g-9n2S