DLA Piper advises Societe Generale on first green loan to Russian mining sector

DLA Piper has advised Societe Generale, one of Europe’s leading financial services groups, on the USD125 million loan to Polymetal, a global gold and silver producer with assets in Russia and Kazakhstan, to finance investments in transition to a sustainable and low-emissions economy. This is the first green loan in the Russian mining sector.

Societe Generale will provide a six-year loan with a three-year grace period under Polymetal’s Green Financing Framework, which specifies eligible environmental, social and governance (ESG) projects and criteria for their long-term funding. The loan can be extended to seven years on the first anniversary of signing.

The loan proceeds will be allocated to projects among the following categories within 24 months from the first utilisation: clean transportation, renewable energy, energy efficiency and sustainable waste and water management projects, which contribute to Polymetal’s sustainability goals and actions against climate change.

DLA Piper’s Moscow-based Finance and Projects team was led by partner and practice head Karen Young, supported by legal director Alexei Kolesnikov and associates Ksenia Mikhaylova and Daria Vasilieva.

Commenting, Karen Young said: “We are especially honoured to be structuring this first green loan in the Russian mining sector and bring our global experience and innovative solutions across the sustainability and ESG spectrum to the table. The successful completion of this transaction is yet another illustration of our commitment to making businesses better by helping clients and communities transition to a low-carbon economy and a more sustainable future.”