Sustainability-Linked Loans

Sustainability-Linked Loans: annual ghg kpi verification by independent party; margin ratchet adjustment based on kpi performance (typically ±5–15 bps).

Jurisdiction
us_federal
Status
voluntary
Category
First deadline
Annual (tied to credit agreement anniversary)
Who must comply
Corporate borrowers with sustainability-linked credit facilities (all sectors)
Penalties
Margin step-up (financial cost) for KPI miss

What it is

Sustainability-Linked Loans (LSTA SLL Principles (2023)) is a us federal sustainable finance measure. Annual GHG KPI verification by independent party; margin ratchet adjustment based on KPI performance (typically ±5–15 bps).

Who must comply

Corporate borrowers with sustainability-linked credit facilities (all sectors)

What you must disclose

Annual GHG KPI verification by independent party; margin ratchet adjustment based on KPI performance (typically ±5–15 bps)

Timeline

Annual (tied to credit agreement anniversary)

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