Jointly with the Loan Market Association (LMA), the Principles, supported by ICMA, launched in June 2024 the Sustainability-Linked Loans financing Bond Guidelines (SLLBG).
The core recommendation of these Guidelines is that the existing Sustainability-Linked Loan Principles (SLLP) should be used as the basis for construction of any such portfolio which may be communicated to the market via a bond instrument. SLLBs consist of the financing a portfolio of sustainability-linked loans aligned with the SLLP, adopting the Use of Proceeds project financing structuring usual to GSS bonds.
The SLLBG establish voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the SLLB market by clarifying the approach for issuance of such type of instrument.
The SLLBG are intended for broad use by the market: they provide issuers with guidance on the key components involved in launching a credible SLLB; they aid investors by promoting availability of information necessary to evaluate the eligible SLLs in light of the (core components of the) SLLP, especially on the relevance and materiality of selected KPI(s) and their level of ambition; they assist underwriters by offering guidance that will facilitate transactions that preserve the integrity of the market, and facilitate the external review.
