Dentons US LLP

09/15/2021 | Press release | Distributed by Public on 09/15/2021 07:29

Dentons advises on the Isle of Mans first sustainability bond issue

September 15, 2021

London-Dentons has advised the joint lead managers, including among others, HSBC and Santander on a successful Ā£400 million sustainability bond issue by the Isle of Man Treasury. The bonds have a semi-annual coupon of 1.625% and mature in 2051. HSBC also acted as the sole ESG structuring agent. This is the first sustainability bond issue by the Isle of Man and is an exceptionally rare debt issue from one of the UK's crown dependencies.

The Isle of Man is situated in the Irish Sea, with a population of 83,000, and although it is one of the smallest countries that issues bonds, its GDP per capita of US$ 86,000 is the highest of any country Moody's rates. It is one of the seven Unesco-recognised biospheres in the UK and has a strong emphasis on sustainability. Its sustainable finance framework allows the Isle of Man to issue green, social or sustainability debt instruments that contribute to addressing climate change and the UN Sustainable Development Goals for 2030.

Nick Hayday, partner in Dentons' Capital Markets practice in London, said, 'This has been a great outcome for the Isle of Man, and we are honoured to have assisted them and the joint lead managers on this transaction'.

Victoria Wyer, senior associate in Dentons' Capital Markets practice in London, said, 'We are delighted to have assisted the joint lead managers in supporting the Isle of Man to achieve their goal of issuing their first sustainability bond'.

The Dentons London team was led by partner Nick Hayday with senior associate Victoria Wyer, who were assisted by associate Niharika Khimji and trainees Ed Varney and Tom Breheny advising on English law. Appleby provided advice on the laws of Isle of Man to the joint lead managers.

Ernst & Young acted as financial advisers and Clifford Chance and Cains acted as legal advisers to the Isle of Man Treasury.

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