Legal & Regulatory News

ACT publishes guidance on sustainability-linked loan terms.

On 2 August 2023, Slaughter and May published ‘A Borrower’s Guide to Sustainability-Linked Loan Terms’ (the Guide) which was produced for the Association of Corporate Treasurers. The purpose of the Guide is to equip treasurers with an understanding of the parameters of a sustainability-linked loan (SLL) and how those characteristics are protected in facility documentation.

The Guide incorporates a detailed summary of the Sustainability-Linked Loan Principles (SLLP) and the accompanying SLLP guidance, to provide background to the product, as well as a description of the role of the sustainability coordinator.

The Guide uses the LMA’s Model Provisions for SLLs as a reference point to explain the components of SLL terms, supplemented with additional explanations and commentary. The Guide builds off the ACT Borrower’s Guide to the LMA’s Investment Grade Agreements, which includes an introduction to SLLs.

Click here to read the press release. 

Click here to read the guidance on sustainability-linked loan terms.

Click here to read the Model Provisions for sustainability-linked loans.