Christmas is coming early to the ESG bond market as the new EU Green Bond Standard applies from 21 December 2024.
The new standard is conceptually similar to existing ICMA use of proceeds standards but quite different in the detail.
Under the standard, net proceeds, subject to certain exceptions, must be allocated to EU taxonomy-aligned activities and Issuers must fulfil various reporting and information requirements in accordance with new pre and post issuance disclosure templates. Issuers are also required to obtain an external review on a new European green bond fact sheet and certain allocation reports. There will be an ESMA supervision regime for external reviewers subject to a transitional period.
Whilst the new standard remains voluntary, Issuers must also adhere to certain other requirements in order to use the “European Green Bond” or “EUGB” label.
In particular, the EU Green Bond Standard can only be used by Issuers that publish a prospectus under the EU Prospectus Regulation (with the exception of those EU sovereign and quasi sovereign entities that are exempt).
In this presentation, we take a look at the key elements of the EU Green Bond Standard, including the distinctions from the ICMA Green Bond Principles and some important documentation considerations.
Please see full publication below for more information.
