On December 11, 2018, the Loan Syndications and Trading Association (LSTA), the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA) jointly announced the release of revised and extended Green Loan Principles (GLP).
The revised1 and extended GLP provide a more in-depth explanation as to how the GLP can be applied to revolving credit facilities and also capture the June 2018 updates to the Green Bond Principles maintained by the International Capital Markets Association (ICMA).
The LSTA reports that in 2019 it will be seeking to produce a set of principles that apply to sustainability improvement loans (also known as sustainability-linked loans), which are loans structured to incentivize a borrower to achieve predetermined sustainability performance targets.
How these sustainability improvement loan principles might differ from the ICMA’s Sustainability Bond Guidelines remains to be seen.
1 The LMA and APLMA had published prior versions of the GLP, which were described in our earlier In Brief: It Isn’t Just the Color of Money – International Loan Markets Go Green, available at: https://www.mayerbrown.com/It-Isnt-Just-the-Color-of-Money--International-Loan-Markets-Go-Green-03-28-2018/.
For more information about the topics raised in this In Brief, please contact J. Paul Forrester.
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