Standard Chartered arranges first U.S. sustainable use-of-proceeds syndicated subscription finance facility for the KKR Global Impact Fund

NEW YORK, June 5, 2020 – Standard Chartered Bank today announced that it has worked with the global investment firm KKR to complete the first U.S. sustainable use-of-proceeds syndicated subscription finance facility for the KKR Global Impact Fund.

The sustainable loan will serve as the revolving credit facility for KKR’s global fund dedicated to investing in businesses that contribute measurable progress toward one or more of the United Nations Sustainable Development Goals (SDGs). All investments funded under the facility are required to meet stringent criteria to ensure alignment with the SDGs and are subject to ongoing monitoring and reporting of impact on specific SDGs after the investments have been made.

“As one of the active lead arrangers and lenders in the subscription financing space, we are proud to collaborate with KKR and support SDG-related initiatives through innovative financing solutions,” said Torry Berntsen, CEO and Head of Corporate & Institutional Banking, Americas at Standard Chartered. “This transaction is a positive reflection of how financial institutions can play a key role in supporting investments in projects that address the world’s social and environmental challenges in a measurable and reportable fashion
that maintain the integrity of impact-related funds.”

“We are pleased to work with lenders who share our belief that financial performance and societal impact are intrinsically aligned. By incorporating a sustainable use-of-proceeds subscription finance facility into our fund we are able to deliver value for our investors and support the development of best practices in impact investing, including benchmarking against the SDGs,” said Robert Antablin and Ken Mehlman, KKR Partners and Co-Heads of the KKR Global Impact Fund.

“We are proud to support the KKR Global Impact Fund alongside Standard Chartered on the issuance of the U.S.’ inaugural sustainable use-of-proceeds syndicated subscription finance facility which represents a significant step toward using financial markets to confront global social and environmental challenges,” said Matthew Slovik, Head of the Global Sustainable Finance Group at Morgan Stanley.

Standard Chartered acted as the co-lead arranger and sole sustainability coordinator and sustainability structuring agent. Morgan Stanley acted as administrative agent and co-lead arranger. Mayer Brown acted as lenders counsel and KKR was advised by Simpson Thacher & Bartlett.

This new facility follows Standard Chartered’s involvement in the recently announced closure of the first impact-focused subscription finance facility, a USD2 billion sustainable deposit product which will finance projects aligned with the SDGs and USD1 billion of financing for companies that provide goods and services to help the fight against Covid -19.

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