Current need and opportunities
The International Finance Corporation (IFC) and the Emerging Africa Infrastructure Fund recently co-invested in a US$97.6 million social bond issuance to support access to electricity in Ivory Coast. African countries, however, need around US$28 billion of investment each year for the next seven years if they are to meet the ‘Access
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On 8 May 2022, OFAC issued a determination (Determination) pursuant to Executive Order (E.O.) 14071 (issued on 8 April 2022), “Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services,” prohibiting:
“The exportation, reexportation, sale, or supply, directly or indirectly, from the United States
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Social finance, impact investing, blended finance…the endless industry jargon and terminology in this emerging asset class can be confusing. In this series, our industry leading global Social Impact Finance group looks to demystify the social finance market and its growing importance for financial institutions and investors.
Greed is no longer good. The next generation of investors increasingly demand that their investments do more than just generate a financial return. Demand for social investment products is driven, in part, by millennials who prefer to invest in alignment with personal values. In response to this growing demand, chatter in financial markets is awash with talk of the ‘spectrum of capital’ – a map of the broad range of risk and return strategies that exist within impact investing markets, and how those relate to wider capital market strategies. The 2014 report from the G8 Social Impact Investment Taskforce, Asset Allocation Working Group, illustrated the landscape based on both investor financial objectives and impact (see diagram below).
Continue Reading Impact Finance Series: The Spectrum of Capital
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Following their loss at first instance in Titan Europe 2006-1 P.L.C. and others [2016] EWHC 969 (Ch) (the background to the case and our commentary can be found here), the Class X Noteholder appealed the decision in respect of the central issue in the proceedings – when calculating the Class X Interest Rate in accordance with the Conditions, is it necessary to take account of any additional interest due under the Loans following a default?
Continue Reading Class X litigation: Not so appealing
The recent spate of litigation in CMBS transactions by noteholders to obtain interpretations of their rights directly in the English courts rather than through the note trustee raises two distinct questions: do investors have standing as a matter of both the transaction documents and general contract law to launch such proceedings and secondly should they
It’s not been a good month for Class X Noteholders. Following the judgment in the Windermere VII case (see our commentary here) in which Snowden J found against the Class X Noteholder, the Chancellor of the High Court, Etherton J, in Titan Europe 2006-1 P.L.C. and others [2016] EWHC 969 (Ch) similarly rejected the arguments put forward by the Class X Noteholders.
Continue Reading The Class X Factor: It’s a NO from the Chancellor
As outlined in our previous blog, X-tra, X-tra, Real All About It! published on Friday 8 April, Mr Justice Snowden handed down judgment of the High Court in the much anticipated Windermere VII Class X Notes dispute.
Continue Reading X-tra X-tra read more about it! First English Court Ruling on Class X Notes in European CMBS
Much has been written regarding the recent EU and US sanctions targeting the Russian capital markets, military and oil sectors (our own commentary can be found here) and the broad nature of the sanctions has, it would seem, produced some (probably) unintended consequences when applied to the mechanics of day to day capital markets operations. On their face, the capital markets sectoral sanctions are designed to cut off the ability of the sanctioned companies to access funding in the equity and debt markets. Hence, broadly speaking, anybody who must comply with EU or US sanctions cannot participate or deal in any new debt or equity issued by a sanctioned entity once they have been put on the sanctions lists. Existing debt or equity issued prior to the implementation of sanctions is grandfathered.
€32,000,000. A horror indeed for Colliers International UK (plc) (Colliers) as Mr Justice Blair awarded that amount to the issuer of the Titan Europe 2006-3 CMBS (Titan). The judgment was for the loss suffered by Titan in relation to the negligent valuation by Colliers of a property in Nuremberg originally occupied by the (now bankrupt) German mail order giant Quelle (see judgment of Titan Europe 2006-3 plc v Colliers International UK plc (in liquidation) [2014] EWHC 3106 (Comm) here).
Aside from questions that arose in relation to the valuation of the property itself, the case considered pertinent questions of loss and reliance in relation to securitisation issuers, namely whether:
Another day, another CMBS transaction declares an insolvency related event of default (after the REC6 default), this time based on the ‘balance sheet’ event of default. The notice posted by the issuer clearly states that after the sale of property securing the Brisk loan, the issuer will not have sufficient assets to repay the Class D Notes and the Class E Notes. Its assets are less than its liabilities. Hence, an insolvency event of default must occur. Simple, right? Well, maybe…
Continue Reading Victoria Funding (EMC-III) PLC: (I can’t get no) Satisfaction