Ratchet: Difference between revisions
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1. ''Loan documentation - pricing - credit risk - credit ratings.'' | |||
A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower. | A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower. | ||
Also known as a 'pricing grid'. | Also known as a 'pricing grid'. | ||
2. ''Loan documentation - pricing - ESG - KPIs.'' | |||
A clause in a loan document which links the pricing of the borrowing to the borrower's performance against ESG performance KPIs. | |||
:<span style="color:#4B0082">'''''Places for People's (PfP's) £900m ESG-linked RCF'''''</span> | |||
:"PfP agreed on three meaningful and stretching environmental and social KPIs aligned with four of the UN Sustainable Development Goals. | |||
:These are documented in line with the LMA’s Sustainability-Linked Loan Principles with performance tied to upward and downward margin ratchets." | |||
:''ACT Deals of the Year 2022: Overall winner - 4 April 2023.'' | |||
== See also == | |||
* [[Clause]] | |||
* [[Credit rating]] | |||
* [[Credit risk]] | |||
* [[Documentation]] | |||
* [[Environmental, social and governance]] (ESG) | |||
* [[Key performance indicator]] (KPI) | |||
* [[Loan agreement]] | |||
* [[Loan Market Association]] (LMA) | |||
* [[Margin]] | |||
* [[Revolving credit facility]] (RCF) | |||
* [[Sustainability-Linked Loan Principles]] (SLLPs) | |||
* [[Sustainable Development Goals]] (SGDs) | |||
[[Category:Corporate_finance]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 21:43, 3 August 2024
1. Loan documentation - pricing - credit risk - credit ratings.
A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.
Also known as a 'pricing grid'.
2. Loan documentation - pricing - ESG - KPIs.
A clause in a loan document which links the pricing of the borrowing to the borrower's performance against ESG performance KPIs.
- Places for People's (PfP's) £900m ESG-linked RCF
- "PfP agreed on three meaningful and stretching environmental and social KPIs aligned with four of the UN Sustainable Development Goals.
- These are documented in line with the LMA’s Sustainability-Linked Loan Principles with performance tied to upward and downward margin ratchets."
- ACT Deals of the Year 2022: Overall winner - 4 April 2023.
