The ‘green’ finance revolution shows no signs of slowing down, with sustainable debt issuance continuing to set new records.
This year we have seen an explosion of new deals carrying sustainability-linked pricing in the European LBO market, in the form of Sustainability-Linked Loans (SLLs).
While it is hoped that the advent of such deals will herald a wider commitment by borrowers/private equity sponsors to ESG disclosure, there is understandable scrutiny about this latest development in the market. We explore some of the key features and terms associated with these deals, and offer our views on what we think is necessary in a credible SLL.
