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Clifford Chance advises NIBC Bank on first fully ESG-compliant CLO

15 January 2020

Clifford Chance advises NIBC Bank on first fully ESG-compliant CLO

International law firm Clifford Chance advised NIBC Bank on issuing the first fully ESG compliant European Collateralized Loan Obligation (CLO), EUR410 million North Westerly VI, which further builds on NIBC Bank's ambition to be a corporate sustainability leader.

North Westerly VI complies with the best practices of ESG investing which are fully embedded in NIBC's business strategy and decision making process. It not only restricts investment in controversial sectors (such as coal power and mining, extreme fossil fuels, weapons and firearms, tobacco and gambling among others) but also requires ongoing monitoring and re-assessment of the portfolio, grading of obligors and industries based on the level of risk and quarterly investor reporting on the ESG profile of the portfolio. Investments whose ESG risk profile has deteriorated may be divested of by the CLO, subject to compliance with the portfolio quality tests.

Clifford Chance is a leader in sustainable finance, and has advised on several "first of their kind" deals including: the first blue bond (Republic of Seychelles), the first green sovereign sukuk (Republic of Indonesia), the largest ever single renewable asset project financing (Hornsea), and the first Green EMTN Programme and €1.75 billion bonds thereunder (Société du Grand Paris).

The Clifford Chance team was led by Jessica Littlewood and Julia Tsybina in London, with US law support provided by Robert Villani in New York.