LMA Publish Model Provisions For Sustainability Linked Loans

On 4 May 2023, the Loan Market Association ("LMA") published a rider containing draft provisions for sustainability linked loans ("SLLs") for inserting into LMA form facility agreements (the "SLL Rider"). These provisions are aligned with the recently updated versions of the sustainability linked loan principles (the "SLLP") and related guidance published by the LMA together with the Loan Syndications & Trading Association and the Asia Pacific Loan Market Association, which we wrote about earlier this year. While the SLLP and related guidance have assisted market participants in the development of the SLL market, the LMA had not previously suggested SLL drafting for inserting into LMA framework loan facility documentation. In this article we will go through the provisions included in the SLL Rider.