Debevoise & Plimpton LLP has advised a private equity fund managed by EQT in a new €2.7 billion subscription credit facility (with an upper limit of around €5 billion), which incorporates innovative environmental, social and governance (“ESG”) mechanics.

The facility is coupled with an innovative pricing model designed to inspire and incentivize portfolio companies to improve their performance in the areas of i) gender equality on the board of directors and ii) renewable energy transition, supported by iii) a fundamental sustainability governance platform.

For full details of the new facility, see here.

This is the second ESG-linked facility of its type Debevoise on which has advised EQT. The team advised on a similar €2.3 billion facility earlier this year (see detail), which saw Debevoise named Banking and Finance team of the Year at the British Legal Awards (see detail).

The Debevoise team advising EQT on the facility was led by partner Thomas Smith, and included associates Felix Paterson and Alex Bell.