A database of information about green and sustainability-linked loans (SLLs) has been launched by Environmental Finance, in response to recent developments in the sustainable debt market.
Green loans have become increasingly popular in the past four years, replicating the rapid growth of the green bond market which Environmental Finance has been tracking since its inception in 2007. More recently, a variety of SLLs – whose terms depend on the borrower hitting certain targets linked to their environmental or social performance – have also appeared.
Voluntary, but widely followed, guidelines for both types of instruments have been published by the Loan Market Association and other industry bodies, to help ensure good practice and minimise the risk of 'green washing'. These are expected to encourage substantial further issuance.
We will endeavour to monitor adherence to these guidelines through the new database, while also logging as much information as possible on the size and terms of deals, the borrowers and lenders involved and, where relevant, the key performance indicators.
The new Green and Sustainability Linked Loans Database is now available on the Environmental Finance Bond Database. For more information on the green bonds or green loans databases, please contact Scott Davis at: scott.davis@fieldgibsonmedia.com