White & Case Advises Lenders on First ESG-Linked Financing in Poland
Global law firm White & Case LLP has advised a syndicate of banks including Santander Bank Polska S.A., Bank Gospodarstwa Krajowego, Powszechna Kasa Oszczędności Bank Polski S.A., Caixabank S.A. (Spółka Akcyjna) Oddział w Polsce and MUFG Bank (Europe) N.V., on Polish energy company's Energa's PLN 2 billion ESG-linked revolving credit facility.
It is the first loan agreement in Poland with the financing terms and conditions closely linked to the borrower's performance against environmental, social and governance (ESG) criteria. ESG-linked financing has grown rapidly in recent years, with a global value in 2018 of US$77.2 billion that represented a 60 percent increase on the previous year.
The revolving credit facility expires in 2024 with an option to extend to 2026. The loan margin will depend on Energa's performance in three areas of sustainable development: care for the natural environment, social responsibility and corporate governance. These ESG indicators will be verified on an annual basis by Moody's group company Vigeo Eiris – an independent international rating agency which specialises in ESG issues. In addition, the agreement prohibits the use of loan proceeds for coal power.
The White & Case team in Warsaw which advised on the transaction included partner Tomasz Ostrowski and associate Katarzyna Jakubiak.
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