Sustainability-linked bond: Difference between revisions
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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. | ||
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:''International Capital Market Association - Sustainability-Linked Bond Principles'' | :''International Capital Market Association - Sustainability-Linked Bond Principles (SLBP)'' | ||
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* [[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 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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== | ==External link== | ||
[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/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-Principles-June-2020-171120.pdf Sustainability Linked Bond Principles, ICMA] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category: | [[Category:Compliance_and_audit]] | ||
[[Category: | [[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 16:02, 29 January 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
- Corporate social responsibility
- Green Bond Principles (GBP)
- ESG
- Green bond
- International Capital Market Association
- Key performance indicator
- Loan Market Association
- Retail bond
- Social bond
- Social impact bond
- Sustainability
- Sustainability bond
- Sustainability Bond Guidelines (SBP)
- Sustainability-linked derivatives (SLDs)
- Sustainability-Linked Loan Principles (SLLP)
- Sustainability performance target
- Use of proceeds bond
