Market Trends 2022: Green Loans

Summary

This practice note discusses market trends for green loans and provides examples of loan clauses in certain publicly filed credit agreements in 2022. Green loans are loans used to finance environmentally sustainable projects. The three loan market trade organizations (the Loan Syndication and Trading Association (LSTA), the Loan Market Association of the UK (LMA), and the Asia Pacific Loan Market Association (APLMA)) released the Green Loan Principles (GLP) in 2018 that provide voluntary recommended guidelines to be applied by market participants on a deal-by-deal basis depending on the underlying characteristics of the transaction in order to promote the development of the green loan market. A copy of the GLP can be found here.