Declassification

Treasury - funding - green loans - use of proceeds - Sustainability-Linked Loan Principles (SLLP).

In the context of green and ESG finance, declassification means a change in the status of a loan agreement, such that it ceases to be labelled as - for example - a sustainability linked loan (SLL).

Declassification of SLLs - consequences

"The consequences of declassification are:

(1) The margin adjustment mechanism and each Sustainability Provision cease to apply; and

(2) No future publicity of the Facilities as sustainability-linked is permitted."

A borrower's guide to sustainability-linked loan terms - ACT - Slaughter and May - August 2023 - p55.

See also

• Facility
• Green bond
• Green finance
• Loan agreement
• Margin
• Provision
• Sustainability linked loan (SLL)
• Sustainability
• Sustainability bond
• Sustainability Bond Guidelines
• Sustainability-Linked Loan Principles (SLLP)
• Sustainability performance target
• Sustainable finance
• Use of proceeds bond

Other resource

• A borrower's guide to sustainability-linked loan terms - ACT - Slaughter and May - August 2023.