Green Loans

Summary

This practice note provides introductory information on green loans. It focuses on the Green Loan Principles (GLP) developed by the Asia Pacific Loan Market Association (APLMA), the Loan Market Association (LMA), and the Loan Syndications and Trading Association (LSTA), together with the associated guidance (GLP guidance), as updated in 2025. Green loans are use-of-proceeds loans whose net proceeds, or an amount equivalent to the net proceeds, are used exclusively to finance or refinance, in whole or in part, new and/or existing eligible green projects. The GLPs outline four core components of green loans that, when followed, can promote transparency, disclosure, and integrity in the marketplace.