LMA publishes draft model provisions for Sustainability-Linked Loans

United Kingdom

The LMA has published draft model provisions for sustainability-linked loans (the “SLL Rider”), in response to the rapid growth of sustainability-linked loan issuance in recent years.

One of the objectives of the SLL Rider is to better protect the integrity of the sustainability-linked loan market by providing a basic drafting framework, bringing a greater degree of standardisation to the documentation used in the market and streamlining the negotiation process which, until now, has often proved time consuming given the range of differing drafting standards within the market.

The SLL Rider was prepared in consultation with a working party comprising representatives of financial institutions and law firms active in sustainable finance, including our CMS partner, Simon Johnston and Of Counsel, Caroline Barr. We anticipate that it will be an extremely useful framework for both lenders and borrowers. This briefing is an introduction to the scope of the SLL Rider, how it may be used and trends to look out for going forward.

Click here to read the briefing.