Sustainability linked loan: Difference between revisions
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imported>Doug Williamson (Create page. Source: SLLP https://www.lma.eu.com/application/files/8015/5307/4231/LMA_Sustainability_Linked_Loan_Principles.pdf) |
imported>Doug Williamson (Add link.) |
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* [[Sustainability Bond Guidelines]] | * [[Sustainability Bond Guidelines]] | ||
Revision as of 10:50, 19 September 2019
Sustainability Linked Loan Principles (SLLP).
The SLLP define a sustainability linked loan as:
- Any type of loan instrument and/or contingent facility
- Which incentivises the borrower’s achievement of ambitious, predetermined sustainability performance objectives.
The borrower’s sustainability performance is measured using sustainability performance targets (SPTs).
Contingent facilities include bonding lines, guarantee lines and letters of credit.
The use of proceeds in relation to a sustainability linked loan is not a determinant in its categorisation.
In most cases, sustainability linked loans will be used for general corporate purposes.
Instead of determining specific uses of proceeds, sustainability linked loans look to improve the borrower’s sustainability profile by aligning the loan terms to the borrower’s performance against the SPTs.
