The ACT Borrower’s Guide to Sustainability-Linked Loan (SLL) Terms aims to equip treasurers with an understanding of the parameters of an SLL and how those characteristics are protected in the facility documentation.
SLL terms have evolved more recently. Contractual protections for lenders have become more extensive, reflecting the increasing focus by lenders and regulators on protecting the integrity of the SLL label as the product grows in popularity.
This Borrower’s Guide to SLL Terms includes an overview of the Sustainability-Linked Loan Principles (as updated in February 2023) and a clause-by-clause commentary on key SLL terms, which uses the LMA’s recently published Draft Provisions for SLLs as its reference point.
This new Guide is designed to update and supplement the introduction to SLLs included in the ACT Borrower’s Guide to the LMA’s Investment Grade Agreements.
