Use-of-proceeds provision and Utilisation fee: Difference between pages

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imported>Doug Williamson
(Mend link.)
 
imported>Doug Williamson
(Link with Share of wallet page.)
 
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''Capital markets - sustainability - loans.''
A borrowing fee payable in relation to the amount of a facility which has been drawn down.


A provision in a loan agreement relating to the use of the proceeds of the borrowing, especially in relation to green and sustainable projects.
The amount of the utilisation fee is usually calculated based on the average utilisation of the facility exceeding a specified amount or percentage.
 
 
:<span style="color:#4B0082">'''''ESG factors are influencing borrowing organisations of all sectors and sizes'''''</span>
 
:"Gustavo Brianza, MD of ESG Advisory at NatWest, explained that most banks are waking up to the opportunities: 'Many treasurers may feel they’re not looking to access finance on a scale that brings this up, but most banks are offering sustainable and green loans.
 
:So that might involve a use-of-proceeds provision, which includes green projects, and private placements can also be accessed, so I don’t see the size of the business or the deal as being a barrier to adopting a sustainable finance strategy.'”
 
:''The Treasurer online - 13 June 2022.''




== See also ==
== See also ==
* [[Capital market]]
* [[Commitment fee]]
* [[Climate Transition Finance Handbook]]
* [[Facility fee]]
* [[ESG]]
* [[Non-utilisation fee]]
* [[Green bond]]
* [[Share of wallet]]
* [[Green Bond Principles]]
* [[Green Loan Principles]]
* [[International capital market]]
* [[Issuer]]
* [[Loan Market Association]]
* [[MD]]
* [[Paris Agreement]]
* [[Provision]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Use of Proceeds instrument]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 16:59, 1 October 2017

A borrowing fee payable in relation to the amount of a facility which has been drawn down.

The amount of the utilisation fee is usually calculated based on the average utilisation of the facility exceeding a specified amount or percentage.


See also