Articles by author
The Pensions Regulator’s new teeth: how might they bite lending transactions?
This article outlines how risks relating to defined benefit pension scheme liabilities affect financing transactions, the relevant provisions of the new Pension Schemes Act 2021 and the extent to which these provisions might result in changes in practice.
1 APR 2021Green bonds: time for new investor protections?
Green bonds, the proceeds of which are intended to be applied to green projects, have increased in popularity as investors seek to tackle the climate crisis alongside maximising economic returns. A feature of green bonds that some may find quite surprising is that the intended use of proceeds of a green bond is not specified in the contractual terms and conditions. The terms and conditions of a green bond are in fact typically identical to those of a conventional bond. The FCA and others have raised the question of whether the “use of proceeds” provisions in green bond documentation should reflect their central purpose and whether the current legally flexible approach to use of proceeds is sufficient to protect investors from “green-washing”. In this In practice article, we outline the reasons why “use of proceeds” provisions have not been tightened in green bonds so far and why, ultimately, the current approach is aligned with the green goals market participants are seeking to achieve.
1 NOV 2021The National Security and Investment Act 2021 revisited: when are secured creditors obliged to make mandatory notifications?
The National Security and Investment Act 2021 (NSIA or the Act) is a complex and wide-ranging piece of legislation with the potential to impact many acquisitions and other corporate transactions. It empowers the Secretary of State for Business, Energy and Industrial Strategy (the Secretary of State) to review and where appropriate, intervene in investments in qualifying entities and assets that have given, or may give rise to a risk to national security. Since the NSIA came into force at the beginning of 2022, its practical implications have inevitably come to the fore. This includes how the Act’s mandatory pre-notification requirements apply to creditors taking security over shares in entities operating in qualifying sectors of the economy. While the government’s intent seems clear in terms of when the NSIA will impact secured creditors, the text of the Act itself and related guidance have resulted in some questions among practitioners.
1 APR 2022
