Ratchet: Difference between revisions
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imported>Doug Williamson (Add definition - source - ACT - https://www.treasurers.org/hub/treasurer-magazine/act-deals-of-the-year-awards-2022-overall-winner) |
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* [[Credit risk]] | * [[Credit risk]] | ||
* [[Documentation]] | * [[Documentation]] | ||
* [[ | * [[Environmental, social and governance]] (ESG) | ||
* [[Key performance indicator]] (KPI) | * [[Key performance indicator]] (KPI) | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
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* [[Margin]] | * [[Margin]] | ||
* [[Revolving credit facility]] (RCF) | * [[Revolving credit facility]] (RCF) | ||
* [[Sustainability Linked Loan Principles]] (SLLPs) | * [[Sustainability-Linked Loan Principles]] (SLLPs) | ||
* [[Sustainable Development Goals]] (SGDs) | * [[Sustainable Development Goals]] (SGDs) | ||
[[Category:Corporate_finance]] | [[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:Manage_risks]] | ||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[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.
