Sustainability provision

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1. Sustainability linked loans (SLLs) - documentation - Loan Market Association (LMA).

Under the Loan Market Association (LMA)'s draft provisions for sustainability-linked loans, the definition of a Sustainability Provision is intended to capture all the sustainability-related obligations imposed on the borrower under the sustainability linked loan (SLL).

In this context, failure to comply with a sustainability provision is designated as a sustainability breach rather than an event of default.

(Source - A Borrower's Guide to Sustainability-Linked Loan Terms - Slaughter and May, Association of Corporate Treasurers, August 2023, p39.)


Similar provisions in other contexts.

See also