Shearman And Sterling

Mining Metals

Feb 07, 2020

ESG Loans: A New Source of Mining Finance

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ESG LOANS: A NEW SOURCE OF MINING FINANCE 

Green financing is usually not top-of-mind for mining companies considering their financing options, but it should be. Two trends, the “greening” efforts of the mining industry and the growing availability of green and environmental, social and governance (ESG)-linked loan products and sources, have resulted in green and ESG-linked financing becoming an increasingly relevant source of funding for the mining sector. A growing array of innovative debt products is available to finance a wide variety of green projects which can help mining companies meet their sustainability targets and comply with industry initiatives and regulatory requirements.

Further, they can provide mining companies access to capital sources not otherwise available (i.e. dedicated green and ESG capital pools), lower funding costs, more certain paths through investor credit approval processes, and improved reputations for green and socially-responsible business practices.

Partner Cynthia Urda Kassis, counsel Jason Pratt and Mehran Massih and associate Augusto Ruiloba authored  two articles on this topic, one published by the Mining Journal, titled “ESG Loans a New Source of Mining Finance,” which is addressed to the mining sector specifically, and another published by Project Finance International, titled “Green and ESG Loans – Emerging Trends,” which is a more in-depth article that addresses green/ESG-linked financing generally.

As the world emerges from the current pandemic, we expect that there will be a return to continued robust growth of the green finance market.

Read ‘ESG Loans a New Source of Mining Finance’ in Mining Journal.

Read ‘Green and ESG Loans – Emerging Trends’ in Project Finance International.

Authors and Contributors

Cynthia Urda Kassis

Partner

Project Development & Finance

+1 212 848 7969

+1 212 848 7969

New York

Jason Pratt

Counsel

Real Estate

+1 212 848 5449

+1 212 848 5449

New York

Mehran Massih

Counsel

Real Estate

+44 20 7655 5603

+44 20 7655 5603

+1 212 848 7377

+1 212 848 7377

London

Augusto Ruiloba

Associate

Project Development & Finance

+1 212 848 4562

+1 212 848 4562

New York