Abstract
Sustainability Linked Loans (SLLs) have emerged as a dynamic financial instrument that aligns corporate financing with sustainability objectives. Unlike traditional loans, SLLs are tied to the borrower’s achievement of pre-determined sustainability performance targets (SPTs). As corporations increasingly prioritize ESG criteria, SLLs offer an opportunity to integrate these considerations into their financial strategies. This article explores the fundamentals of SLLs, their benefits, and the considerations necessary for maximizing their potential.