Course description
Developed and delivered by a combination of leading market practitioners and ICMA’s sustainable bond experts, this online course provides a thorough and practical introduction to the essentials of Sustainability-Linked Bonds (SLB), including steps required for making an SLB issue. It introduces the underlying market drivers, evolving regulatory framework and the main features of the SLB product and market based on the Sustainability-linked Bond Principles (SLBP), including essential definitions of what constitutes an SLB issue and a detailed review of how the SLBP work. While focusing on SLBs, the course also looks at developments in the green and sustainability bond market and ICMA’s guidance on climate transition finance. Climate transition is a key sustainability objective that can be financed by green or sustainability bonds, as well as SLBs.
Upcoming start dates
Suitability - Who should attend?
- Firms who are looking to issue or invest in green, social and sustainability bonds
- Market professionals involved in underwriting, research or professional services for sustainable bonds; this includes capital markets lawyers, external reviewers including rating agencies, stock exchanges, data and index providers official sector representatives promoting, supervising or developing policies on sustainable finance
- Press, academics and other professionals with an interest in sustainable finance and the merits of sustainable bond markets
Outcome / Qualification etc.
After completing this online course, the delegate should be able to:
- Identify recent trends and potential future developments and opportunities for sustainability-linked bonds (SLB)
- Understand why the SLB market matters and how it works
- Demonstrate the foundation skills for taking part in the SLB market - how and why to align with and apply the Sustainability-linked Bond Principles (SLBP), including:
- Identifying the benefits of SLBs and developing the positioning in your organisation;
- Identifying the relevant decision-makers;
- Analysing alignment with overall corporate / environmental strategy;
- Recognising relevant regulation and the SLBP’s importance in regulatory trends; Mapping leading market players
- Planning an SLB issuance framework linked to the five core components of the SLBP
- Identifying recommendations and practice in reporting, including on the performance of KPIs and ambition of SPTs
- Identifying the role and value-added of external service providers, notably external reviews foreseen by and partly required under the SLBP.
- Identifying buy-side considerations including rationale for integrating SLBs in investment strategy and practice
Training Course Content
Section One – Sustainable Finance and Sustainable Bonds
- Mainstreaming of Sustainable Finance: Paris Agreement and COP; UN SDGs; NGFS; TCFD; TNFD; ESG Ratings; ISSB and CSRD Reporting
- GSSS Product Snapshot: Market evolution from green to social and sustainability to SLBs; bond/financing frameworks; ICMA Governance including WGs, etc.
- Dynamics in the overall Sustainable Bond Market (focus on SLBs): Yearly issuance numbers; issuance per sector; region and currency; UoPs; SLB KPIs; UoP Bonds and SLBs issued to finance the transition etc.
Section Two – SLBP Five Core Components + External Reviews
- Selection of KPIs and Calibration of Sustainability Performance Targets (SPTs): environmental and social KPIs (definition, calculation methods etc.); defining ambition (strategy, timeline etc.) and relevant benchmarks (own performance, peers, science); impact of future changes in technology and the role of regulation
- Bond Characteristics and Reporting:various financial/structural characteristics of SLBs currently in the market or proposed and why some of them are preferred / more practical; what to report and frequency
- Verification and External Reviews:SLB recommended vs required verification; external review types, Guidelines for External Review, External Reviewer Forum topics
- Case Study. Reviewing a complete SLB Framework.
Section Three – Climate Transition Finance
- Transition Finance:what is transition finance, why is it necessary, use of UoP bonds and SLBs to finance transition, EU Taxonomy Transition Activities; SBti; TPI; PCAF; just transition
- Climate Transition Finance Handbook (CTFH):recommended disclosures; 4 key elements of these disclosures
Section Four – Coming to Market
- Market Participants: Investors, underwriters, data providers, stock exchanges
- Preparing for the Market and how the SLB process differs from UoP bonds: Strategic decision, planning and preparation, other practical matters, documentation, difference to issuing an UoP bond etc.
- SLBs in the Marke: with non-achievement of KPIs/SPTs triggering certain bond characteristics (currently mostly a coupon step-up), issuers need to have internal processes for monitoring their pathways also in relation to specified benchmarks; handling of market sensitive information etc.
Course delivery details
Livestreamed Course
ICMA livestreamed courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.
The Introduction to Sustainablity-Linked Bonds live sessions are delivered in two 3.5 hour sessions over the course of two days. You will be given access to the course materials before the live sessions, and will have access to those for a total of six months. During these six months you will have the option to keep working through the course materials at your own pace.
Expenses
Livestreamed course fees
- ICMA Members: EUR 1,150 + VAT (if applicable)
- Non-members: EUR 1,650 + VAT (if applicable)
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International Capital Market Association
For close to 50 years, ICMA’s educational offering has played a major part in its mission to raise standards in the international capital market. Our courses are designed and delivered by industry professionals for industry professionals. The offering comprises a...