Sustainability Linked Loans
What are Sustainability Linked Loans?
SLLs are a type of corporate loan where the interest rate is tied to the borrower's achievement of pre-defined sustainability performance targets (SPTs). These targets are ambitious, relevant to the borrower's business, and typically measured against key performance indicators (KPIs) such as emissions reduction, water consumption, waste management, or diversity metrics.
Successfully meeting these targets can lead to a reduction in borrowing costs, while failure to do so may result in a higher interest rate.
Benefits of Sustainability Linked Loans
Cost Savings: Potential reduction in interest rates upon achieving sustainability targets.
Enhanced Reputation: Demonstrates a clear commitment to ESG principles, enhancing stakeholder trust and brand image.
Improved ESG Performance: Provides a direct financial incentive to meet and exceed sustainability goals.
Access to Sustainable Capital: Connects businesses with a growing pool of capital dedicated to sustainable investments.
Helix Advises on SLLs
Leveraging our deep understanding of sustainable finance and our experience in structuring financial vehicles, Helix guides businesses through the complexities of securing SLLs:
Sustainability Target Identification & Assessment
We work with your business to identify meaningful, ambitious, and measurable Sustainability Performance Targets (SPTs) that are genuinely integrated into your operational strategy and align with your overall sustainability goals.
Documentation Preparation
Our advisory includes preparing the necessary institutional-grade documentation, such as sustainability reports, ESG performance data, and detailed financial forecasts, to present a compelling case to lenders.
Framework Development
We assist in developing robust SLL frameworks that clearly define KPIs, SPTs, and the associated financial mechanisms, ensuring they meet market best practices and lender requirements.
Lender Connection & Negotiation
Drawing on our network and expertise in connecting businesses with aligned capital, we help identify suitable lenders interested in sustainable finance. We then support you through the negotiation process to secure favorable terms for your SLL.
Integration with Overall Strategy
We ensure that securing an SLL is not just a financial transaction but a strategic move that reinforces your commitment to sustainability and enhances your corporate value.
Helix Research Ltd. extends its advisory expertise to businesses seeking to integrate sustainability directly into their financing structures through Sustainability Linked Loans (SLLs).
Aligned with our proprietary Eco-economics thesis and our core competency in Sustainable Finance & ESG Integration, we empower companies to secure financing that not only fuels growth but also incentivizes measurable improvements in their environmental, social, and governance (ESG) performance.