Clauses

An interest ratchet mechanism for loan facility agreements that lowers the cost of capital for companies who (directly or indirectly) save carbon in their operations. 

Rider clauses (for LMA facilities agreements) that require each Lender to confirm that a percentage of its lending is sustainable or 'green' finance.

A generic reporting/disclosure clause that can be included in the Loan Market Association (LMA) information and undertakings provisions of any corporate loan and is not limited to 'green' loans.

Voluntary disclosures to the standard form CLLS Certificate of Title to update investors on environmental and climate disclosures that may affect the long term value of the property.

Amendments and additions to the Institutional Limited Partners Association (ILPA) standard form Limited Partnership Agreement allowing environment, social and governance (ESG) issues to be investigated, raised and incorporated in investment and pricing decisions.

Makes the qualifying criteria for receiving finance conditional on setting a net zero target and reflects this obligation in a convertible loan note instrument that incentivises net zero performance.

Drafting for corporate finance documentation whereby interest payments are adjusted based on the borrower group’s performance measured against water sustainability key performance indicators (KPIs).

This clause builds climate change mitigation into the environmental/ social standards in Development Finance Institution (DFI) or Export Credit Agency (ECA) finance transactions.

A template clause for inclusion in investment documents to financially incentivise management teams to meet targets which are linked to climate change and environmental issues.

Green loan clauses that are aligned to the Green Loan Principles (as defined below) by reference to Loan Market Association (LMA) style drafting.

This guide and checklist can be used to introduce borrowers to, and encourage them to access, Sustainability-Linked Loans (SLLs).