Kabir Nadkarni’s Post

Some lenders are exploring "green loans" with better terms for borrowers purchasing fuel-efficient or electric vehicles. Expanding such financing options to include subprime borrowers could help mitigate the environmental damage associated with less efficient vehicles.

As customers increasingly demand eco-friendly products, businesses of all sizes are under pressure to demonstrate their green credentials. To support both our corporate clients and SME borrowers, we have introduced the Business Green Loan. This targeted finance solution fills a gap in the market by enabling our clients to showcase their commitment to sustainability. By deploying capital into leading technology, our clients can also lower their input costs. Join us in building a greener future for businesses of all sizes. #sustainability #businessgreenloan #CommBankMomentum

3 main ways to be a greener company with the Green Business Loan Scheme Going green is not only good for the planet but it’s also good for business, bringing benefits like cost savings and enhanced brand reputation. The Green Business Loan Scheme provides Welsh businesses with a package of support that helps them reduce carbon emissions and reap the commercial benefits of going green. In this article, we’ll explain what the Green Business Loan Scheme is and cover some key measures that you could take to become a green business. Read more: https://lnkd.in/ewxu6FZS #DBF #DevelopmentBankofWales #GoGreen #GreenBusinessLoanscheme

Assured Guaranty secured control in high-speed rail Brightline's $2.2 billion senior bond issuance, giving the insurer control if the issuer runs into debt payment trouble "A critical aspect of insuring a majority of the bonds is that if something unexpected were to happen, Assured Guaranty would be the party deciding what actions to take on behalf of the senior bondholders," said Lorne Potash, managing director and head of infrastructure finance and project finance for the Americas at Assured. "That's why being able to exercise those control rights are important to us." Read more about this and other recent Brightline developments in our roundup. https://bit.ly/4cMHBzI #infrastructure

Last week, the US SEC approved new rules for listed companies regarding their carbon emission disclosure. Less stringent than what in place in the EU, the rule covers Scope 1 and 2 carbon emissions that are considered material to their business. But Scope 3 emissions, the downstream emissions resulting from their products and services are not in the picture. Most experts agree that Scope 3 emissions represent the vast majority of emissions for most companies. However, accounting for them is pretty daunting. Let’s consider a car loan, a typical example of a blockbuster product in FSI. Here's what a bank would need to account for: 1. Operational Emissions of the Bank: This includes the bank's day-to-day operational emissions not directly related to the car loan but necessary for its provision. It involves emissions from the bank's buildings (like offices where the loan is managed), IT services (cloud included) and employee travel related to managing and issuing car loans. These are often considered under the bank's Scope 1 and 2 emissions and may not directly apply to the car loan itself but are part of the broader operational context. 2. Investment and Portfolio Management: The bank's emissions from managing investments and portfolios that include the car loan, including the energy used for data management, analysis, and storage related to these services. 3. Customer Use of Loaned Funds: The most direct part of Scope 3 emissions related to a car loan would involve the emissions resulting from using the loaned funds to purchase a vehicle. This doesn't directly produce emissions but enables the purchase of a car that does. The emissions are indirect and depend on the type of vehicle purchased with the loan (EV, gasoline, diesel) and its life cycle emissions from fuel/energy consumption, maintenance, and eventual disposal. 4. End-of-Life Vehicle Processing: While the bank does not directly involve itself in the disposal of vehicles, financing vehicles that eventually need to be disposed of or recycled can be considered a part of the loan's life cycle impact. Calculating Scope 3 emissions for a car loan involves assessing the emissions that the loan indirectly influences rather than directly causes. The most tangible aspect might relate to the financed vehicle's type and its operational emissions. Financial institutions might use emission factors and average values to estimate these impacts based on the types of vehicles typically financed and the average loan amounts. It's a complex process that often involves a lot of estimation and assumptions, especially in determining the share of responsibility for emissions across the lifecycle of financed activities. This is a space ripe for fintech disruption! #carfinancing #fintech #ESG #FSI

Brightline rail hit the tax-exempt market in April with more than $3.1 billion of low-investment grade and unrated bonds, some of which carried yields as high as 12%. "I don't know if I've ever seen, in my 25 years, a bond issued with a 12% yield," said Chad Farrington, co-head of municipal bond strategy at DWS, which owns some of the Brightline debt that's being taken out with a recent deal. Farrington, who's bullish on Brightline's future, declined to say whether the firm participated in the financing. Check out our roundup for more on this and other recent Brightline developments. https://bit.ly/3RSYwIz #infrastructure

Let's look at green loans: Financing for a project that has environmental benefits. E.g. introduce a solar power to a building, electric vehicle infrastructure or retrofit buildings to comply with BREEAM. The borrower will a)       have a fair amount of monitoring and reporting to do b)       to be verified and receive accreditation, while c)       you get bragging rights that will enhance your reputation. The lender (bank), using the Green Loan Principles framework, gets to contribute towards their sustainability goals. WIN - WIN. But.. is it worth the reporting burden?

🌿 Drafting a Green Loan?🌿 The LMA Green Loan Draft Provisions have now been published and mark a great step forward in the sustainable finance market! The rider provides a common starting point for documentation and should: 🌍clarify commercial discussions; 🌍streamline negotiations; and 🌍drive greater transactional efficiency, in each case supporting the necessary continued growth and integrity of the green loan product. David and I have written a short piece outline the key points and how the rider works - the link is in the comments. Anyone working on a live or upcoming green loan transaction, the NRF sustainable finance specialists are happy to chat through any queries☺️ Rebecca Oliver Katie Knight #greenloans #sustainablefinance

There are terrific alternatives to traditional financing that might fit the needs of your #construction firm more nimbly than bank loans. Travelers Capital Corp.’s Warren Miller, CFA offers some #concrete suggestions in this CFMA piece. https://lnkd.in/eRbfYBpn #construction #constructionfinancing #capitalstrategy #alternativefinancing #bridgeloan #assetbased Parallel Communications Group, Inc. Bob Hebeisen

LOOKING FOR CHARGING PARTNERS: The U.S. government has billions of dollars in loans available for EV-related businesses, and it’s looking for partners. “The goal is to give access to low-cost capital that private lenders cannot or will not provide,” ‘Wayne Killen, the U.S. Department of Energy’s Loan Programs Office told those gathered at the EV Charging Summit & Expo in Las Vegas. https://lnkd.in/eFvnEUd5