Sustainability-linked loans - the evolution the benefits and the concerns
In this article, Robbie O’Driscoll and Clare McKeon from ALG’s General Finance team explore the evolution of sustainability linked loans (SLLs) and their role in encouraging and incentivising borrowers to focus on sustainability initiatives, looking at their five key components:
- selection of key performance indicators
- calibration of the sustainability performance targets
- loan characteristics
- reporting
- verification
This article also considers the key aspects of the model provisions published by the Loan Market Association and highlights some of the benefits and concerns of SLLs which parties should consider.
Date published: 6 December 2023