Paul Hastings advises responsAbility Investments AG on innovative social bond
The issuer, Financing For Healthier Lives, has issued up to $177.5 million in profit participating debentures. The proceeds raised will be mobilised in order to support targeted investment to finance Environmental, Social and Governance (ESG) projects in emerging markets, thereby advancing certain specific UN Sustainable Development Goals. The issuer has received a partial guarantee on losses from the Swedish International Development Agency.
While prior social bond offerings have generally had a singular focus, this bond has a broad impact across the UN Sustainable Development Goals targeting health, financial inclusion, climate-smart agriculture, access to clean and affordable energy, clean water, and sanitation, while generating bond yields for investors.
The Paul Hastings team leveraged its cross-jurisdiction experience, with the deal being jointly led by structured credit practice chair Scott Faga in Washington, D.C. and structured credit partner Cameron Saylor in London. Associates Blake Jones and Amy Liu assisted. Other parties also involved in the deal were Financing For Healthier Lives and Danske Bank.
The deal showcased the expertise and innovative approach of the Paul Hastings team. The structure fostered the mobilisation of private capital in order to effectively address ESG matters that need urgent attention. As businesses seek to prioritise ESG focused matters, it’s hoped that there will be more transactions of this nature, and the Paul Hastings team is ready to support this.
At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.