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The power of growth - Guide to sustainability-linked loans

  • Ireland
  • Banking and finance

20-05-2021

What are sustainability-linked loans?

Sustainability-linked loans (SLLs), also known as ESG (environmental, social and governance) loans, are general corporate purpose loans and revolving credit facilities which have an additional intention of facilitating and supporting environmental and/or socially sustainable economic activity and growth. Importantly, SLLs are non-sector specific so can apply to any corporate, regardless of underlying asset class. They also do not require the purpose of the lending to be for specific ESG projects.

The borrower’s sustainability performance is measured using sustainability performance targets, as set against key performance indicators, external ratings and/or equivalent metrics and which measure improvements in the borrower’s sustainability profile.

The purpose of the Eversheds Sutherland guide to SLLs is to provide a quick reference 
point on the main drivers for both lender and borrower clients on entering into a SLL 
and summarises four key points which we think are crucial to consider when parties are 
discussing sustainability or ESG loans. If you would like any further advice in relation to 
SLLs, please ask one of our team members listed.

The purpose of the Eversheds Sutherland guide to SLLs is to provide a quick reference point on the main drivers for both lender and borrower clients on entering into a SLL and summarises four key points which we think are crucial to consider when parties are discussing sustainability or ESG loans. If you would like any further advice in relation to SLLs, please ask one of our team members listed.

To continue reading, please access the full guide here >> 'Guide to sustainability linked loans'

For more information, please contact

Piaras Power, Partner

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