March 6, 2024 - Today the LSTA announced the publication of the latest addition to our sustainable lending library – the “Guide on Sustainability Linked Loan Principles (SLLP) in Fund Finance”. The Guide is published jointly with the APLMA and LMA and, for the first time, the Fund Finance Association. The Guide was developed by a cross-trade association working group and then vetted by each of the Association’s broader Committee.

The Guide aims to provide practical guidance on the application of the SLLP in fund finance transactions by identifying challenges and considerations that may arise and discussing how the SLLP can be best utilized in the fund finance market in a manner consistent with the overarching goals of the SLLP. Addressing each of the core components of the SLLP in turn, the Guide directly addresses the potential tension points between those components and the structural characteristics of fund financings.  The Guide also includes a non-exhaustive list of potential key performance indicators (KPIs).

It is the intention that this Guide foster further growth of SLLs in a neighboring market, but the Guide should not be read to be prescriptive or inclusive of all considerations in these transactions.