Sleeping sustainability-linked loan

Sustainability-Linked Loan Principles (SLLP) - sustainability linked loans - funding - borrowing - corporate treasury.

(Sleeping SLL).

A sleeping sustainability linked loan is a loan which is not a sustainability linked loan, but can become one in the near future, when related sustainability performance targets (SPTs) are agreed on.

Sleeping SLLs were controversial

"Against a backdrop of concerns about standards in the sustainable finance market and greenwashing, this structure, when first proposed in the market, was somewhat controversial among lenders.

For some borrowers, however, especially those almost - but not quite - ready to set KPIs/SPTs at the point of refinancing, it has offered a practical solution, and a number have been able to make use of it to date."

The ACT Slaughter & May Borrower’s Guide to Sustainability-Linked Loan Terms - August 2023.

See also

• Borrowing
• Corporate treasury
• Funding
• Greenwash
• Key performance indicator (KPI)
• Sustainable finance
• Sustainability
• Sustainability bond
• Sustainability linked loan (SLL)
• Sustainability-Linked Loan Principles (SLLP)
• Sustainability performance target (SPT)
• Sustainable finance
• Use of proceeds bond

Other resource

• The ACT Slaughter & May Borrower’s Guide to Sustainability-Linked Loan Terms - August 2023.