CBN Lender Survey Results & Discussion Sponsored by: 1
CBN Lender Survey Results & Discussion 2016 CBN Annual Conference 2
CBN Lender Survey Overview • Purpose of the survey was to get an updated perspective on lender’s attitudes towards brownfields • Survey developed with input from members of CBN’s Finance and Insurance Committee and other CBN Board Members • Survey Sent via “Survey Monkey” to 8 Canadian lenders • 6 completed survey (one lender said they did not lend against brownfields) • Challenge in finding the right person to ask….. 3
Survey Questions • Lending operations Canada-wide? • Environmental Policy related to credit/financing operations? • Require Environmental Site Assessments (ESAs) for sites taken as security? • Willing to lend against sites with contamination above generic standards? • Willing to lend against sites with contamination above generic standards where a site specific risk assessment (or similar), including regulatory review/approval, has been completed? • Do you have a preferred list of environmental consultants? • Do you have minimum requirements for Professional and/or Contractors Pollution Liability insurance for these consultants? 4
Survey Questions (cont.) • Do you require a reliance letter from consultants? • Do you have any “age” restrictions on ESAs? • Do you use holdbacks to ensure the remediation of a contaminated site is completed? • Will you accept a “Screening Level Risk Assessment” (SLRA) in lieu of actual remediation? • Do you finance properties where the contamination from the subject property had migrated offsite? • Do you finance properties with liens or potential/ongoing legal action? • Have you, or would you, use environmental insurance as a backstop to, or in lieu of, an indemnity for a loan against a site or group of sites? 5
Most significant findings/results • Most responding lenders will lend against sites contaminated above generic standards • None of the responding lenders said they would consider sites with liens or potential/ongoing legal action • Most of the responding lenders said they would not finance properties where contamination had migrated from the subject property • Some responding lenders will accept an SLRA or equivalent • All responding lenders use holdbacks to ensure remediation of a contaminated site is completed • Most responding lenders have and/or would use environmental insurance 6
Panel Questions and Discussion • What is most important issue for you when considering lending against a brownfield site? • How important is regulatory certainty/liability relief to you when considering lending against a brownfield site? • Is there a type(s) of former land use(s) on a brownfield site where you would not consider lending? 7
Thank you for attending! Contact info@canadianbrownfieldsnetwork.ca 8
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