Availability of sustainability funding driving changes in legal agreements

Demand for sustainability-linked loans is surging and banks are competing to offer this new form of finance in South Africa, which is driving legal firms like Webber Wentzel to innovate in the loan terms and agreements that they are drafting for clients, say Webber Wentzel partners Khurshid Fazel and Karen Couzyn. A sustainability-linked loan or a sustainability-linked debt security, collectively referred to as SLL, is different from a green bond.