Today, we want to give a special shoutout to our dedicated members – along with participants from across the wider banking and private credit markets – for their invaluable contributions to the LMA’s first-ever Sustainable Finance Insights Report on Greenwashing: Understanding and Navigating the Impacts for the Loan Market. A special thank you to Hannah Vanstone (LMA) and Sukhvir Basran (King & Spalding) for their tireless efforts in bringing this report to life. 

Key insights from the report:

• How banks and private credit fund managers are responding to new UK and EU regulations.
• The impact of greenwashing on demand for GSS loans.
• Measures being taken to address greenwashing risks.
• Key challenges and opportunities for mitigating these risks.

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Today, we responded to ESMA’s consultation on the draft Regulatory Technical Standards on open-ended loan originating alternative investment funds.

The LMA welcomes ESMA’s approach in providing a harmonised implementing framework tailored to the specificities of OE LO AIFs, allowing managers to demonstrate to their respective NCAs that they can maintain an open-ended structure.

We believe that the framework should be aligned with market trends aimed at meeting investors’ increasing demands for alternative investment strategies with a liquid profile.

Read the full response here

The EU faces a complex global economic landscape with rising competition, rapid technological advancements, and the need for strategic investments. Strong banking, capital markets, and diverse financing channels are crucial to supporting European businesses—especially SMEs, scale-ups, and infrastructure projects—ensuring they can grow and compete globally

Please read the full response to see our recommendations to the Commission. 

Thank you to all our buy-side and sell-side members who contributed their insights to the response. Your feedback has been instrumental in shaping the LMA’s response and ensuring that the collective voice of the market is heard.

Our key points focus on the need to take account of the diversity of:

(i) NBFIs themselves;

(ii) the activities they undertake; and

(iii) the ways in which they use leverage.

Click below to see the response. 

Earlier this month, European Securities and Markets Authority (ESMA) released a new consultation paper on the revision of the disclosure framework for private securitisation.

Mandated under Article 7 of the Securitisation Regulation, ESMA is proposing a new 'simplified' disclosure template for private securitisation. 

However, we have some concerns about whether ESMA’s proposals will do much to simplify the existing regime. Read below and share your response with us by 31 March.

The LMA is pleased to have published the second in its series of Fund Finance Insights papers. These are intended to enhance understanding of this growing asset class.

This second Fund Finance Insights paper builds on the previously published Insights exploring the ​history and evolution of fund finance in Europe​. The latest Insights paper turns to the evolving fund finance market in Middle East and Africa.

There has been much talk about the growing role of NAV financing in fund finance. Whilst this is not a new product, it has been receiving increasing attention. In this LMA Talks Loan Markets we sat with market senior leader to unpack the future of NAV financing.

Listen on Spotify.

The LMA is pleased to have published a Fund Finance Glossary. This is intended to help drive efficiency in, and understanding of, the market.

The fund finance market is increasingly in focus and is ever evolving. Different terms are often used to describe the same thing (think sublines and capital calls) and there can also be instances of parties speaking at cross-purposes (think recyclable and recallable capital). This can create inefficiencies in practice.

Article 118-bis requires loan agreements to include clauses dealing with benchmark changes. This can also impact English law loan agreements. We continue to work proactively with our members on this, including through the EURIBOR Fallbacks Task Force, to assist efficiency in the market. 

The LMA has today published its high-level position paper on the EU’s First Omnibus package on sustainability.

To read the full response, please click here.  If you’d like to find out more, please contact hannah.vanstone@lma.eu.com.

Yesterday, the LMA submitted its response to HM Treasury’s consultation on the value case for a UK Green Taxonomy.

A copy of the consultation response can be found here.

The Loan Market Association (LMA) is delighted to announce the release of the first in our Fund Finance Insights series, an initiative aimed at enhancing understanding and engagement with this vital asset class.

Our inaugural paper, Tracing the History and Evolution of Fund Finance in Europe, uncovers the long-standing tradition of innovation and resilience within fund finance, challenging the perception that it is a relatively recent phenomenon. 

On 17 December 2024, we published our single currency euro exposure drafts; exposure draft wording on Bloomberg EURIBOR-€STR Spread; and a guidance note on fallbacks to interbank term rates and LMA documentation. We are requesting feedback on the exposure draft documentation, particularly in respect of its use in practice, by close of business Friday 28 February 2025. 

Our quarterly publication offering thought-provoking commentary and expert perspectives on sustainable finance.

Download PDF versions of past issues you may have missed.