Clifford Chance

Clifford Chance advises IFC on two sustainable finance projects worth a combined US$175 million

Global law firm Clifford Chance has advised the International Finance Corporation (IFC), a member of the World Bank Group, on two sustainable finance projects in the emerging markets worth a combined US$175 million. This involves a US$75 million loan made to global supply chain services provider Li & Fung and a US$100 million debt finance package to global apparel industry manufacturer EPIC Group.

The US$75 million loan to Li & Fung and its affiliate LFX's supply-chain fintech company, Air8 will bolster their working capital and broaden their range of supply chain solutions and financing services for apparel and general merchandise suppliers, especially SMEs. The loan is expected to drive economic growth and job creation in developing economies such as Bangladesh, Cambodia, China, Indonesia, Sri Lanka, and Vietnam. IFC will also collaborate with Li & Fung to enhance environmental and social practices among its suppliers.

The US$100 million financing package for EPIC Group comprises a US$70 million sustainability-linked loan and a US$30 million green loan structured with corporate sustainability performance targets in reducing greenhouse gas emissions intensity, decreasing freshwater intensity, and increasing the representation of women in management. The package will support EPIC Group's expansion in Bangladesh, the construction of a new manufacturing facility in India, various technology enhancements aimed at improving energy and water efficiency and create an estimated 10,500 direct and 17,000 indirect jobs across the two countries.

Lead partner Vicky Ma said, "These loans demonstrate the potential of sustainable finance to revolutionise supply chains, mitigate environmental impact, and promote socially responsible economic development on a global scale. Our collaboration with IFC underscores our commitment to advancing sustainable growth and supporting the vital work they do in emerging markets."

Vicky led both matters with support from a core team in Hong Kong consisting of senior associate Anthony Chan and associate Timothy Nip. The team also includes a wider team of lawyers:

• Advising IFC on the Li & Fung transaction:
  • Singapore partner Thomas England, associate Josephine Tang and trainee solicitor Myles Henry;
• Advising IFC on the EPIC Group transaction:
  • Partner Graham Brewer (Dubai), senior associate Greg Jehle (Abu Dhabi), and trainee solicitors Philippe Mattoo (Abu Dhabi), Jonathan Ling (Hong Kong) and Francesca Spittal (London).

These matters build on Clifford Chance's extensive track record of handling sustainable financing agreements globally, such as advising Asia’s first sustainability-linked perpetual securities, Asian Development Bank financing a carbon offset project in India, the world's largest Orange Bond by Impact Investment Exchange, South East Asia's first public sustainability-linked bond issuance by Surbana Jurong Group and Bayfront Infrastructure’s US$410 million infrastructure asset-backed securities.