Materialised Bonds: A Cheap And Simple Method For Financing Corporate Projects

In 2022 Schoenherr advised on two green bonds for financing renewable energy projects in Bulgaria with foreign lenders structured as alternative investment funds who may not extend classic loans but may invest in corporate bonds. Apart from being a suitable alternative to lenders who do not hold a banking licence, these bonds represented a legal novelty in two respects.

Bonds drafting is cheaper compared to classic LMA credit agreements

First, they were documented under Bulgarian law agreements that were purportedly the first to fully follow the LMA model Subscription Agreement for use in pan-European private placements (LMA model). There are many domestic bonds formalities that need to be reflected, but they do not change the LMA model's business logic, as its main commercial terms may still be incorporated by adopting a slightly different structure and wording.