Excluding electricity generation corporate loans when missing production and energy source data


If a financial institution is unable to provide data for energy generation (MWh) and energy source (coal, wind, etc.) for corporate loans related to electricity generation, can the loans missing this information be excluded when setting their SBT? Guidance states the temperature rating and portfolio coverage methodologies are not applicable to electricity generation. As an external consultancy helping an FI to set their target, an added challenge comes when regulators prevent the FI from sharing counterparty names. This means missing data cannot be obtained from (e.g.) researching borrowers’ recent reports.

Thanks for your help

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Thanks for posting Tom.

Per the FI Guidance, 100% of electricity generation project finance and corporate loans need to be covered, which would mean that no exclusions can be made.

For your specific situation, one option would be for the FI to provide you with the underlying data.



I have a follow up question to the above. If corporate loans related to electricity generation are lent to SMEs (falls within two categories in table 5.2 of SBT FI) can the FI exclude it from the target, because it is an SME?

Thank you,

Table 5.2 of the Near-Term Financial Sector SBT Guidance, which provides minimum coverage requirements, has been updated in the draft Version 2 with more granular specifications for each asset class.

The proposed changes are up for public consultation so we welcome your feedback/questions on this document, and two other new documents, through the survey by Aug 14.