This practice note provides an overview of sustainability-linked loans (SLL). Sustainability-themed debt instruments represent one response of the financial community to the need to channel capital towards facilitating a carbon transition. A Lexis Practice Advisor Practice Note by Amara Gossin, Barclays and Robert Lewis, Sidley Austin
While the majority of sustainable finance activity has been on the equities side, the fixed income markets have also seen the development of green and sustainability linked products. On the loans side, the US loan market saw its first green loans and sustainability linked loans in 2018. Here are eight things you need to know […]
Presented by Mark Betteridge, Global Head of Fixed Income and Currency Analytics at Bloomberg, Clare Dawson, Chief Executive at LMA, Charlotte Peyraud, VP at Sustainable Banking, CACIB and Tess Virmani, Associate General Counsel & SVP, Public Policy at LSTA
(updated March 25, 2019) – Today, the LSTA, together with the Loan Market Association (LMA) and Asia Pacific Loan Market Association (APLMA), published Sustainability Linked Loan Principles. This voluntary framework represents the next step in collaborating to develop global standards for sustainable lending.
Sustainability linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth. The Sustainability Linked Loan Principles (SLLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets.
This week we cover Leveraged Lending Regs & Stats; Japanese Risk Retention; Green Loans; & LIBOR Nags
Tess Virmani, Associate General Counsel of the LSTA, participated in the Green Finance Seminar in Mexico City.
(updated on January 31, 2019) – For the third straight year, the World Economic Forum listed environmental threats as the biggest risk facing the global economy. So, it was timely that Tess Virmani, Associate General Counsel of the LSTA, participated in the Green Finance Seminar hosted by Banco de Mexico in Mexico City this week. The seminar, held in conjunction with the meeting of the Steering Committee of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), pulled together central banks and supervisors from all over North, Central and South America to educate them on the current state of, and challenges to, sustainable finance and possible ways forward. Sessions included a look at several of the voluntary frameworks informing activities in the sustainable finance sector. These included aspirational, industry-wide frameworks, such as the UNEPFI Principles of Responsible Banking and the Principles of Responsible Investment as well as transaction-focused frameworks, such as the Green Bond Principles and Green Loan Principles.
This week we cover LIBOR Fallbacks and Triage; Green Loans and Oil & Gas Loans
2018 has brought the first green loans to the Americas. Today, the LSTA, together with the Loan Market Association and Asia Pacific Loan Market Association, published extended Green Loan Principles (GLP). The LSTA, LMA and APLMA and their dedicated working group of leading financial institutions seek to produce a globally acceptable approach to the granting of green loans to better facilitate and support environmentally sustainable economic activity. This iteration provides a more in-depth explanation as to how the GLP can be applied to revolving credit facilities and also captures the July 2018 updates to the Green Bond Principles maintained by ICMA.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.