Use-of-proceeds provision and Useful economic life: Difference between pages

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''Capital markets - sustainability - loans.''
''Accounting.''


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 period over which the present owner of an asset will derive economic benefits from its use.




:<span style="color:#4B0082">'''''ESG factors influencing borrowing organisations of all sectors and sizes'''''</span>
Using depreciation or amortisation, the book values of fixed assets are generally written down over their remaining useful economical life, to their residual value.


:"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]]
* [[Amortisation]]
* [[Climate Transition Finance Handbook]]
* [[Depreciation]]
* [[ESG]]
* [[Fixed assets]]
* [[Green bond]]
* [[Net book value]]
* [[Green Bond Principles]]
* [[Reducing balance ]]
* [[Green Loan Principles]]
* [[Residual value]]
* [[International capital market]]
* [[Straight line ]]
* [[Issuer]]
* [[Loan Market Association]]
* [[MD]]
* [[Paris Agreement]]
* [[Provision]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Use of Proceeds instrument]]


[[Category:The_business_context]]
[[Category:Planning_and_projects]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Technology]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 15:54, 20 December 2020

Accounting.

The period over which the present owner of an asset will derive economic benefits from its use.


Using depreciation or amortisation, the book values of fixed assets are generally written down over their remaining useful economical life, to their residual value.


See also