CHICAGO – Feb. 26, 2020 – Global law firm Greenberg Traurig, LLP is representing institutional investors in what is believed to be the world’s first U.S. private placement linked to Environmental, Social, and Governance (ESG) criteria -- standards socially conscious investors can use to screen potential investments -- for Australia’s largest airport, Sydney Airport Limited. The Greenberg Traurig team includes Corporate Practice Shareholder Charles J. Kolin, Of Counsel Alejandra Garcia Earley, and Associate Eric W. Larson.
Sydney Airport has raised approximately A$600m (US$402m equivalent) in a multi tranche U.S. private placement, which includes what is reported as the world’s first sustainability-linked bond in that market. As part of the ESG-linked U.S. Private Placement 20-year tranche, coupons can vary up or down periodically depending on Sydney Airport's performance against its sustainability metrics over time, as assessed by an independent third party.
The market for sustainable financing is developing rapidly in Australia and Europe (where there is currently another ESG-linked U.S. private placement being undertaken). To date, however, there have been no issuances from borrowers in the U.S. Private Placement market with a sustainability or ESG linkage where coupon payments can vary two-ways according to the performance of the borrowers' sustainability and ESG metrics.
About Greenberg Traurig’s Corporate Practice: Greenberg Traurig’s Corporate Practice includes one of the largest groups of attorneys – approximately 450 globally – in a single law firm engaged on a full-time basis in the practice of institutional private placements. The firm has a dedicated group of 13 full-time private placement practitioners that represents investors in the institutional private placement market. For more than three decades, members of Greenberg Traurig’s Private Placement Practice have represented institutional investors on transactions ranging from traditional secured and unsecured note issuances, to structured and project finance in every major industry sectors.
About Greenberg Traurig: Greenberg Traurig, LLP (GT) has approximately 2200 attorneys in 41 locations in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 20 on the Am Law Global 100. Web: www.gtlaw.com Twitter: @GT_Law.