Sustainability-linked bond: Difference between revisions

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(SLB).
(SLB).


ICMA defines and explains sustainability-linked bonds as:
ICMA defines and explains sustainability-linked bonds as:


:".. any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability/ ESG objectives.  
:".. any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability / ESG objectives.  


:"In that sense, issuers are thereby committing explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline.  
:In that sense, issuers are thereby committing explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline.  


:"SLBs are a forward-looking performance based instrument.
:SLBs are a forward-looking performance based instrument.




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:"The proceeds of SLBs are intended to be used for general purposes, hence the use of proceeds is not a determinant in its categorisation. Regardless, in select cases, issuers may choose to combine the GBP/SBP approach with the SLBP.  
:"The proceeds of SLBs are intended to be used for general purposes, hence the use of proceeds is not a determinant in its categorisation. Regardless, in select cases, issuers may choose to combine the GBP/SBP approach with the SLBP.  


:"Thus, please note that SLB are not to be confused with Sustainability Bonds (i.e. Use-of-Proceeds bonds)."
:Thus, please note that SLB are not to be confused with Sustainability Bonds (i.e. Use-of-Proceeds bonds)."




:''International Capital Market Association - Sustainability-Linked Bond Principles''
:''International Capital Market Association - Sustainability-Linked Bond Principles (SLBP)''




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* [[Corporate social responsibility]]
* [[Corporate social responsibility]]
* [[Green Bond Principles]] (GBP)
* [[Green Bond Principles]] (GBP)
* [[ESG]]
*[[Environmental, social and governance]] (ESG)
* [[Green bond]]
* [[Green bond]]
* [[International Capital Market Association]]
* [[International Capital Market Association]]
* [[Key performance indicator]]
* [[Key performance indicator]]
* [[Loan Market Association]]
* [[Loan Market Association]]
* [[Retail bond]]
* [[Social bond]]
* [[Social bond]]
* [[Social impact bond]]
* [[Social impact bond]]
* [[Sustainability]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Sustainability bond]]
* [[Sustainability Bond Guidelines]]
* [[Sustainability Bond Guidelines]] (SBP)
* [[Sustainability Linked Loan Principles]]
* [[Sustainability-Linked Bond Principles]]  (SLBP)
* [[Sustainability-linked derivatives]]  (SLDs)
* [[Sustainability-Linked Loan Principles]] (SLLP)
* [[Sustainability performance target]]
* [[Sustainability performance target]]
* [[Use of proceeds bond]]
* [[Use of proceeds bond]]
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===Other links===
==Other resource==
[https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-Principles-June-2020-171120.pdf Sustainability Linked Bond Principles, ICMA]
* [https://www.icmagroup.org/assets/documents/Sustainable-finance/2024-updates/Sustainability-Linked-Bond-Principles-June-2024.pdf Sustainability Linked Bond Principles, ICMA - 2024]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Latest revision as of 16:12, 3 August 2024

Sustainability - sustainable bonds - International Capital Market Association (ICMA).

(SLB).


ICMA defines and explains sustainability-linked bonds as:

".. any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability / ESG objectives.
In that sense, issuers are thereby committing explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline.
SLBs are a forward-looking performance based instrument.


"Those objectives are (i) measured through predefined Key Performance Indicators (KPIs) and (ii) assessed against predefined Sustainability Performance Targets (SPTs).


"The proceeds of SLBs are intended to be used for general purposes, hence the use of proceeds is not a determinant in its categorisation. Regardless, in select cases, issuers may choose to combine the GBP/SBP approach with the SLBP.
Thus, please note that SLB are not to be confused with Sustainability Bonds (i.e. Use-of-Proceeds bonds)."


International Capital Market Association - Sustainability-Linked Bond Principles (SLBP)


See also


Other resource