Sustainability linked loans (“SLL”), also known as ESG-linked loans, are products that encourage the achievement of sustainability goals by the borrower. They are effective tools for lenders and borrowers to achieve positive impact. Guidance for these products is provided by the Sustainability Linked Loan Principles (SLLPs), the current standard set by the LMA, LSTA and APLMA. Volumes of SLLs have grown substantially since the first deal in 2017 and this growth has accelerated in the past year – $430 billion of SLLs were issued in 2021, a 239% increase on 2020. This reflects the desire of lenders and borrowers to collaboratively improve their ESG performance and drive positive change.
Our ESG team have a wealth of experience collecting, verifying, analyzing and reporting ESG data across a wide range of products. Our SLL service provides all the necessary tools for both borrowers and lenders to ensure real impact is achieved and accurately reported.
- Collection of a borrower’s data on KPIs
- Analysis and assessment of a borrower’s performance against targets by independent external experts
- Producing performance reports for lender review and publication
- Second party opinion on SLL
- Our platform provides the capabilities to measure and report data on all varieties of KPIs, ensuring that any type of positive impact can be tracked
- Global team of experts assess the data and documents, engaging with and supporting the borrower to ensure all necessary information is communicated and verifiable
- All reports are provided with a breakdown of methodologies and assumptions to ensure that even the most complex, sector-specific data can be communicated to lenders with ease