Travers Smith LLP has advised Investec Bank plc (Investec) on an environmental, social and governance (ESG) linked subscription facility provided to Investindustrial, one of Europe's leading independent investment groups. The facility is one of the first ESG-linked subscription lines in the European fund finance market.
Investec is the Arranger and Sustainability Coordinator of the €600 million facility, which is backed by a syndicate including State Street Corporation and Banca Intesa Sanpaolo. The facility has been structured so that it offers reduced interest payments when specified ESG goals – in areas such as environment, gender diversity and governance – are met by Investindustrial. Any interest cost savings will be ring-fenced by Investindustrial for investment in carbon reduction initiatives, including the continued development of its portfolio of nature-based carbon reduction projects.
Investec has a strongly embedded commitment to sustainability and ESG matters. Sustainable finance is of rapidly growing importance to funds as increasing demand from investors and regulatory pressures promote the incorporation of ESG factors in investment strategies.
The Travers Smith team was led by Finance Partner Katie McMenamin with support from Associates Phoebe Hanglin and Sam Van Besouw and Trainee Jack Meegan.
Finance Partner Katie McMenamin commented "We are proud to have advised Investec on one of the first European ESG-linked fund finance facilities - delivering this deal, featuring an innovative structure, despite the continuing lockdown measures. This transaction highlights Investec's strength in arranging innovative products in the fund finance market and our continued commitment to working alongside our clients to develop cutting edge solutions".
Ogier advised Investec on matters of Luxembourg law. Investindustrial was advised by Kirkland & Ellis.
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