LGFA has developed a Sustainable Financing Bond Framework (“Framework”) to:
- recognise LGFA’s commitment to support council and CCO borrowers to fund sustainable assets and activities, and incentivise GHG emissions reductions;
- 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 opportunity for investors to support council and CCO borrowers to achieve their sustainability aspirations.
Sustainable Loans are loans made by LGFA to member councils and CCOs under the Green, Social and Sustainability (GSS) Lending Programme and the Climate Action Loans (CALs) Programme.
The Framework outlines the process by which LGFA intends to issue and manage sustainable financing bonds that will be notionally allocated to a pool of Sustainable Loans that meet the eligibility criteria set out in the Framework.
Sustainalytics has provided a Second Party Opinion (SPO) on the Framework.