Labelled finance and ESG in deal documents

Module 04 / 5 · 70 min

Structure green, social, sustainability and sustainability-linked bonds and loans, calibrate KPIs and targets, and write ESG into term sheets and agreements.

In this module you will learn to

Distinguish use-of-proceeds instruments from sustainability-linked instruments and choose the right one for a client
Select KPIs and calibrate sustainability performance targets that are material, measurable and ambitious
Design the financial characteristics of a sustainability-linked loan, including the margin ratchet
Draft the ESG provisions of deal documents: ESAP schedules, covenants, representations and warranties, and reporting obligations

Built on

Erudite Africa course specification 3.k: ESG Integration in Investment Banking, Levels 1 and 2 (October 2026)
Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
NBE Directive No. SBB/91/2024 (Bank Corporate Governance); ECMA Directive No. 1030/2024 (reported); Environmental Impact Assessment Proclamation No. 299/2002, Environmental Pollution Control Proclamation No. 300/2002 and Labour Proclamation No. 1156/2019, as cited in the course specification
World Bank Group: Ethiopia Country Climate and Development Report (2024); A Review of Industrial Parks in Ethiopia (2022); Making Ethiopia's Financial Sector Work for Women (2024)
IFC Performance Standards, Equator Principles (EP4), ICMA Green, Social and Sustainability-Linked Bond Principles, loan market sustainability-linked loan principles, SASB, ISSB IFRS S1 and S2, TCFD and UN PRI (general market practice)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.