Sustainability Linked Lending

Sustainability linked loans are any types of loan instruments and/or contingent facilities (such as bonding lines, guarantee lines, or letters of credit) project credits or corporate loans which incentivise the borrower’s achievement of ambitious, predetermined sustainability performance objectives. The borrower’s sustainability performance is measured using sustainability performance targets (SPTs), which include key performance indicators, external ratings, and/or equivalent metrics1 and which measure improvements in the borrower’s sustainability profile. In most instances, sustainability linked loans will be used for general corporate purposes.

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