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The Latest

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22 April 2021

Covid-19 Loans and the Responsibility of the Board

19 April 2021

55 Websites providing illegal Gambling blocked by the Danish Courts

15 April 2021

Moalem Weitemeyer is ranked by the Legal 500

12 April 2021

Ramadan Mubarak to our Muslim friends around the world!

9 April 2021

Danish Supreme Court confirms Decision on Non-compete Restriction falling outside the scope of the Act on Restrictive Employment Clauses

1 April 2021

New Rules for the Danish Institute of Arbitration

26 March 2021

Discharge and Insurance

26 March 2021

New Decision By The Danish High Court Regarding Restrictive Trade Agreements (Price Coordination)

12 March 2021

Proposed Danish Act on Screening of Foreign Investments in Denmark

11 March 2021

New Requirements for Whistleblower Systems and Protection of Whistleblowers

20 January 2021

The Role of ESG Financing in the Banking Market - No 2 in a Series of Briefs on Sustainable Financing

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Towards sustainable Bank Financing

The banking sector has dealt with many transitions over the years. EU regulation on sustainable finance is pushing the sector into rethinking its core business – lending money to businesses.

In general, the term ESG finance covers all sustainable, including ‘green’ and ‘social’, finance. Among the most recognized types of ESG loans today you will find green loans and sustainability-linked loans.

Particularly booming in 2019 were the sustainability-linked loans as one of the key products, and new data tells us that this development continued into 2020. Such loans differ from green loans. Sustainability-linked loans can be applied for any sustainable purposes (green or not) - however, an in-built pricing mechanism means that the loan is cheaper if the borrower achieves certain sustainability performance targets.

This briefing note will take a closer look on what green- and sustainability-linked loans are and how banking institutions are applying these loans in their sustainable loan portfolios.

Henning Aasmul-Olsen

Partner

+45 30 37 96 50

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Joakim Holdt

Associate

+45 30 37 96 21

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