Sustainable Financing Bonds

LGFA has developed a Sustainable Financing Bond Framework (“Framework”) to:

recognise LGFA’s commitment to support council and CCO borrowers ("Borrowers") to fund environmental and/or social projects, assets and activities, and incentivise GHG emission measurement and reductions for a Borrower’s operational emissions;
enable LGFA to issue bonds that are notionally allocated to the Sustainable Loans on LGFA’s balance sheet; and
advance the market for sustainable finance by providing an innovative and holistic opportunity for investors to support Borrowers to achieve their sustainability aspirations.

The Framework outlines the process by which LGFA intends to issue and manage sustainable financing bonds, the net proceeds of which will be notionally allocated to a pool of Sustainable Loans (the pool may comprise either Green and Social Loans, Climate Action Loans or both).

Sustainable Loans are loans made by LGFA that help create alignment of LGFA’s lending activities with social and environmental outcomes achieved by Borrowers.

Sustainalytics has provided a Second Party Opinion (SPO) on the Framework.

LGFA are happy to assist in answering any questions on the Framework.