Commercial papers are short-term debt instruments issued by companies to cover their short-term financing needs. There is a growing interest in embedding environmental, social and governance factors in investment decisions. As a result of this the interest for sustainability-related commercial papers that are specifically designed to finance sustainable activities have emerged.

There are a number of options for sustainable commercial paper. An issuer can use International Capital Market Associations Green Bond Principles, Social Bond Principles and/or Sustainability Bond Guidelines as a basis for green, social and sustainability commercial papers. Most commonly, companies include commercial papers as an eligible debt instrument under a framework together with other debt instruments (e.g. bonds and term loans).

If you would like more information about Sustainable Commercial Papers, please contact us.