Fundamentals · 5 min read
Sustainability-Linked Loan Principles Explained
The SLLP are the market framework most SLLs refer to.
Who publishes them
The Sustainability-Linked Loan Principles are published jointly by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA).
The five components
- Selection of KPIs
- Calibration of SPTs
- Loan characteristics
- Reporting
- Verification
Verification under the SLLP
Borrowers are expected to obtain independent and external verification of their performance against each SPT, at least once a year.