Social Loan Principles

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Sustainability - loan markets.

(SLP).

The Social Loan Principles are a voluntary framework for social loans, issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications & Trading Association (LSTA).


The Social Loan Principles have four components:

1. Use of Proceeds
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting


Eligible social projects may include clean drinking water, sewers, sanitation and reduction of income inequality.


The SLP build on, and explicitly refer to, the Social Bond Principles (SBP) issued by the International Capital Market Association.


SLP and SBP designed to be fully consistent
"It is envisaged that on some occasions, the SLP will be used together with the SBP.
For example, an issuer may issue social bonds using the SBP, and thereafter, when it comes to using the proceeds of the bond issue, the issuer may act as a lender and use the SLP to provide social loans to one or more ultimate borrowers.
In such cases, the consistency of the objectives and of the Social Project eligibility criteria of these instruments should be ensured."
Social Loan Principles


See also


Other links

Social Loan Principles - LMA, APLMA & LSTA