The Social Loan Principles (SLP) were originally published in 2021 and provide a framework for what is recognized as an increasingly important area of finance. In order to promote the development of this product, and underpin its integrity, the APLMA, LMA and LSTA considered it appropriate to produce Guidance on the SLP, to provide market practitioners with clarity on their application and promote a harmonized approach.

This Guidance note should be read alongside the SLP. Guidance is also available for the Sustainability-Linked Loan Principles (SLLP) and Green Loan Principles (GLP). Each of these sets of Guidance are intended to highlight the differences between, and suitability of application of, the SLP, GLP, and SLLP to any particular deal.

*On April 20, 2023, the following amendments were made: (1) Updated to include a disclaimer at the start of guidance. (2) Question 2.A. – Definition amended to align to SLP. (3) First paragraph, Question 2.G. – Wording amended to align with SLP.  This now reads: “Furthermore, the borrower of a social loan should clearly communicate to its lenders the social objective(s) and the target population of the Social Projects and borrowers are encouraged to position this information in the context of their overarching objectives, strategy, policy and/or processes relating to social sustainability.” (4) Question 2.H. – Definition of “ICMA” moved. (5) Second paragraph, Question 3.A.II – Wording amended to align with SLP. This now reads: “The SLP provide that borrowers should, where appropriate, clarify which investments or project portfolios may be refinanced and disclose, to the extent relevant, the expected look-back period (i.e. the number of previous years that the borrower will look back to) for refinanced eligible Social Projects.” (6) Fourth paragraph, Question 3.C.I. – Wording amended to align with SLP.  This now reads: “This documentation should be communicated to lenders participating in the loan on the basis agreed between the parties in the legal documentation.” (7) Question 3.D.I. – Social Loan Coordinator – Hyperlink to ‘An Introduction to the Sustainability Coordinator Role’ included.

Our entire list of Sustainable Lending Library is available here.


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