ASEAN Sustainability-linked Bond Standards
February 24, 2023
The ACMF has developed the ASEAN Sustainability-Linked Bond Standards (ASEAN SLBS) to facilitate the role sustainability-linked bonds can play in funding companies that contribute to sustainability. The ASEAN SLBS intend to enhance transparency, consistency and uniformity of ASEAN Sustainability-Linked Bonds which will also contribute to the development of a new asset class, reduce due diligence cost, and help investors to make informed investment decisions.
Sustainability-linked bonds are any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the Issuer achieves predefined sustainability/environmental, social and governance (ESG) objectives. In that sense, Issuers are thereby committing explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline. Sustainability-linked bonds are a forward-looking performance-based instrument.
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