APLMA publishes updated Green, Social and Sustainability- linked Loan Principals (with updated guidance) 

Date: 3 April 2025
Source: Asia Pacific Loan Market Association 

Abstract:

The Asia Pacific Loan Market Association (APLMA) in collaboration with the Loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA) have published the updated Green, Social and Sustainability-linked loan (SLL) Principles (the Principles) along with updated guidance (Guidance) for use by market participants. 

The Principles set out the core components for these labelled instruments, whilst the corresponding Guidance provides the definitive framework for structuring Green, Social and SLLs. Updates include clarification around KPI requirements for SLLs. The Guidance notes that SLLs will be best suited to borrowers that already have a sustainability/transition strategy in place or who have historical data tracking the borrower’s own performance over time and includes specific guidance on whether a third party ESG rating or “green” CapEX can be used as a KPI.  

The Principles and Guidance will continue to be reviewed, and updated as necessary, by APLMA to address market developments. 

A copy of these documents is available to APLMA members here.  

For more information, see our guidance on Sustainability-linked finance.