Clifford Chance

Clifford Chance advises on Republic of Slovenia’s landmark EUR 1 billion Sustainability-Linked Notes issuance

Global law firm Clifford Chance has advised the joint lead managers on the Republic of Slovenia’s EUR 1 billion 3.125% Sustainability-Linked Notes due July 2035. This is the first-ever Sustainability-Linked Notes issuance by a European sovereign.

The 10-year fixed-rate Notes feature a step-up/step-down in the final coupon, linked to the Republic of Slovenia’s performance against a Key Performance Indicator (KPI) and Sustainability Performance Targets (SPTs) set out in its Sustainability-Linked Notes Framework. The KPI is total annual greenhouse gas (GHG) emissions, with SPTs targeting a 35% reduction (SPT 1.1) or a 45% reduction (SPT 1.2) by 2030, both against a 2005 baseline. If SPT 1.1 is not achieved, the interest rate payable on the Notes will increase by 50 bps. Conversely, if SPT 1.2 is achieved, the interest rate payable on the Notes will decrease by 50 bps.

This transaction highlights Slovenia’s commitment to sustainability and reinforces Clifford Chance’s expertise in innovative sustainable finance.

The Clifford Chance team advising on the transaction was led by Kate Vyvyan, with support from Gopal Bains and Sam Jewell.