Hogan Lovells advises Affinity Water on sustainable finance framework and first green debt issuance

Press releases | 21 October 2021

London, 21 October 2021 – International law firm Hogan Lovells have advised Affinity Water, the UK’s largest water only utility on its first green bond issuance, a Class A £130 million 0.01 per cent CPI Linked private placement due September 2038.

Barclays and Lloyds Bank acted as placement agents.

The proceeds will be used to finance key investments outlined in Affinity’s new Green Finance Framework which Hogan Lovells also worked on, having previously advised Affinity on their first ever sustainability linked financing last year.

The Framework, as with other green bond issuances, supports subscription by investors with green investment criteria. In addition, the Framework is fundamental to Affinity’s Sustainability Strategy and also supports the UN’s Sustainable Development Goals. The Framework covers areas including sustainable water and wastewater management, pollution prevention, aquatic biodiversity conservation and energy efficiency. This green bond issuance also sits within the company’s whole business securitisation on which Hogan Lovells has advised over the last three years.

The Hogan Lovells team was led by Counsel Charles Ford, Senior Counsel Andrew Carey and partner Julian Craughan with support from senior associate Tom Spinks, associate Imogen Walsh and lawyer Ibrahim Sharif. Partner Elliot Weston and senior associate Natasha Newey advised on the tax aspects.

Commenting, Charles Ford and Andrew Carey said “Our work on this matter demonstrates our ability to bring our financing and water-sector expertise together with the specialist advice of our Sustainable Financing & Investing group to provide best-in-market support to our clients. It follows on from a number of other sustainability linked financings which the team have advised on this year.”

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About the Sustainable Finance & Investment team at Hogan Lovells:

In 2019, the firm launched its Global Sustainable Finance & Investment practice, the first of its kind. The goal was to find a way to bring sustainability to every finance transaction, create innovative solutions combining guidance, legal expertise, project management, and alignment of ESG strategy to facilitate sustainability. The team deliver innovative, efficient and scalable solutions to the challenges facing the sustainable finance market and create strong strategic partnerships and collaborations to drive change, develop the market and mobilise capital.