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Sustainability-Linked Loans: Growth of the Sustainable Finance Market and Updated Guidance for Lenders and Borrowers

Simon Finch and Kevin Dowse of Blakes describe what a sustainability-linked loan is, why it is becoming increasingly common in the mid and large corporate lending market, and how to draft a loan document around KPIs and sustainability performance targets to incentivize the borrower to achieve ambitious, material and quantifiable predetermined sustainability performance objectives.