Market Trends 2018/19: Sustainability Linked Loan Principles

Summary

This practice note discusses market trends for sustainability linked loans and provides examples of loan clauses in certain publicly filed credit agreements dated between 2018 and 2019. These provisions provide an incentive to borrowers (generally in the form of lower interest rates) for hitting predefined green targets, such as decreasing greenhouse gas emissions. For a more recent analysis of sustainability linked loan principles, see Market Trends 2019/20: Sustainability Linked Loan Principles.