02 Aug 2023

ACT Borrower’s Guide to Sustainability-Linked Loan Terms

The ACT Borrower’s Guide to Sustainability-Linked Loan (SLL) Terms aims to equip treasurers with an understanding of the parameters of an SLL and how those characteristics are protected in the facility documentation. 

SLL terms have evolved more recently. Contractual protections for lenders have become more extensive, reflecting the increasing focus by lenders and regulators on protecting the integrity of the SLL label as the product grows in popularity.   

Our Borrower’s Guide to SLL Terms, produced for the Association of Corporate Treasurers (ACT), includes an overview of the Sustainability-Linked Loan Principles (as updated in February 2023) and a clause-by-clause commentary on key SLL terms, which uses the LMA’s recently published Draft Provisions for SLLs as its reference point.    

This new Guide is designed to update and supplement the introduction to SLLs included in the ACT Borrower’s Guide to the LMA’s Investment Grade Agreements


This material is provided for general information only. It does not constitute legal or other professional advice.

Practices Financing
Contact Information
Matthew Tobin
Partner at Slaughter and May
Kathrine Meloni
Special Adviser and Head of Treasury Insight at Slaughter and May
Latifah Mohamed
Senior PSL at Slaughter and May