Legal & Regulatory News

Minor amendments to SLLP and SLLP, GLP and SLP guidance documents

20 April 2023

On 20 April 2023, the following minor amendments were made to the below documents.

 

Sustainability-Linked Loan Principles (SLLP)

  • Footnote 4 updated to read: "This role may be referred to as a Sustainability Coordinator or Sustainability Structuring Agent."

SLLP Guidance

  • Updated to include disclaimer at start of guidance.

Green Loan Principles (GLP) Guidance

  • Updated to include disclaimer at start of guidance.
  • First paragraph, Question 2.F. - Wording amended to align with GLP.  This now reads: "Furthermore, the borrower of a green loan should clearly communicate to its lenders the environmental sustainability objectives of the Green Projects, and borrowers are encouraged to position this information in the context of their overarching objectives, strategy, policy and/or processes relating to environmental sustainability."
  • Second paragraph, Question 2.H. – Wording amended to align with GLP.
  • Question 2.H. – Final paragraph removed as this was a duplication.
  • First paragraph, Question 3.A.III. – Wording amended to align with GLP. This now reads: "The GLP provide that borrowers should, where appropriate, clarify which investments or project portfolios may be refinanced and disclose, to the extent relevant, the expected look-back period (i.e. the number of previous years that the borrower will look back to) for refinanced eligible Green Projects."
  • Question 3.B.I.(f) – Added the words "indicative only and" to align with GLP.
  • Question 3.B.II(a) – Typo corrected in final sentence. 
  • First paragraph, Question 3.B.II(c) - Wording amended to align with GLP. This now reads: "The focus of green loans is on the eligible projects rather than on the borrower itself. It should nonetheless be noted that the GLP require that borrowers clearly communicate to its lenders the environmental sustainability objectives of the Green Projects, as well as complementary information on the  processes by which the borrower identifies and manages perceived, actual or potential social and environmental risks associated with the proposed projects."
  • Fourth paragraph, Question 3.C.I. - Wording amended to align with GLP. This now reads: "This documentation should be communicated to lenders participating in the loan on the basis agreed between the parties in the legal documentation."
  • Question 3.D.I. – Green Loan Coordinator – Hyperlink to 'An Introduction to the Sustainability Coordinator Role' included.

Social Loan Principles (SLP) Guidance

  • Updated to include disclaimer at start of guidance.
  • Question 2.A. – Definition amended to align to SLP.
  • First paragraph, Question 2.G. – Wording amended to align with SLP.  This now reads: "Furthermore, the borrower of a social loan should clearly communicate to its lenders the social objective(s) and the target population of the Social Projects and borrowers are encouraged to position this information in the context of their overarching objectives, strategy, policy and/or processes relating to social sustainability."
  • Question 2.H. – Definition of "ICMA" moved.
  • Second paragraph, Question 3.A.II – Wording amended to align with SLP. This now reads: "The SLP provide that borrowers should, where appropriate, clarify which investments or project portfolios may be refinanced and disclose, to the extent relevant, the expected look-back period (i.e. the number of previous years that the borrower will look back to) for refinanced eligible Social Projects."
  • Fourth paragraph, Question 3.C.I. – Wording amended to align with SLP.  This now reads: "This documentation should be communicated to lenders participating in the loan on the basis agreed between the parties in the legal documentation."
  • Question 3.D.I. – Social Loan Coordinator – Hyperlink to 'An Introduction to the Sustainability Coordinator Role' included.