Following the successful precedent of the Green Bond Principles,1 on March 21, 2018, the Loan Market Association and the Asia Pacific Loan Market Association released their Green Loan Principles. After noting the support of the International Capital Markets Association (which issued and maintains the Green Bond Principles), the accompanying joint press release from the associations stated that the Green Loan Principles (GLP):
“aim to create a high-level framework of market standards and guidelines, providing a consistent methodology for use across the wholesale green loan market, whilst allowing the loan product to retain its flexibility, and preserving the integrity of the green loan market while it develops. The GLP build on and refer to the Green Bond Principles (GBP) of the ICMA, with a view to promoting consistency across financial markets.”
In the US loan market, the Loan Syndication and Trading Association is also understood to be working on similar principles.
For more information about the topics raised in this Legal Update, please contact Paul Forrester.
1 See our earlier Legal Update at: https://www.mayerbrown.com/Green-Bonds-Grow-UpBut-Still-Have-Significant-Room-to-Grow-04-20-2016/.