The sustainable lending market is growing across Asia. Singapore continues to position itself as a centre for sustainable finance in Southeast Asia. Other countries in the region, including Indonesia, India, Thailand and Vietnam, are also increasingly focused on sustainable financing and green and sustainable development. The recent publication of the Sustainability Linked Loan Principles by the LMA, APLMA and LSTA represents a further step in the evolution of this rapidly developing market.

In this legal update we provide an overview of some of the key drivers for the growth in sustainability-linked loans in Singapore and Southeast Asia, a summary of the Sustainability Linked Loan Principles and an overview of how the Sustainability Linked Loan Principles may impact on loan transaction documentation and process.