Cadwalader Attorneys Present on 'Greening CLOs' at ELFA's Climate Month Seminar Series

November 10, 2021

Cadwalader Capital Markets partner Claire Puddicombe, Financial Services partner Michael Sholem and Capital Markets special counsel Alex Collins last week participated in a seminar to discuss the “greening” of European CLO transactions in the context of the current regulatory climate as well as the practical application of regulation and investor requirements to European CLOs. The presentation took place as part of the European Leveraged Finance Association’s (ELFA) Climate Month Seminar Series.

ESG features and the Sustainable Finance Disclosure Regulation (SFDR) are trending topics today, and the group discussed, among other things:

  • The application of the SFDR to CLOs.
  • Relevant regulation and legislative initiatives.
  • The key features of the innovative “green” European CLOs that have emerged in the European CLO market in recent years.
  • The main investor requirements that feature in recent European CLO transactions around ESG factors and SFDR.
  • Practical difficulties managers of European CLOs will face in complying with disclosure obligations (both regulatory and contractual).

The group also answered a number of questions posed by seminar participants, including providing more detail on the application of certain aspects of the SFDR to European CLOs and some of the practical challenges on disclosure for the same.