The trade finance industry now has another tool in its ESG toolbox with the publication of the global loan market associations’ social loan principles (SLP).
Launched jointly by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), the SLP are a set of voluntary recommended guidelines for lending that mitigates social issues and challenges or achieves positive social outcomes.
The SLP are the latest in a series of ESG-related loan principles. In 2018, the LMA published the green loan principles (GLP), which clarified the instances in which a loan may be categorised as green, while in 2019, the launch of the sustainability linked loan principles gave the finance industry a definition of sustainability linked finance.
UAE: Analysing potential alternatives to Libor
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Green and Sustainability-Linked Private Placements by EU and UK Issuers | Akin Gump Strauss Hauer & Feld LLP
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By Morgan Davis
09 Mar 2021
The transition of Asia’s capital markets away from Libor got a small boost recently when Korea Development Bank sold the region’s second public dollar bond linked to the new benchmark lending rate, Sofr. But the pace of change is not fast enough.
KDB s three year bond linked to the secured overnight finance rate (Sofr), which also came with a green label, raised $300m last week, making it a modestly sized trade. But achieving size was not a critical objective for the deal. Instead, KDB wanted to establish itself as an issuer in the Sofr market and pave the way for other South Korean borrowers to follow.