Overview
Verdex provides access to a comprehensive library of LMA-standard clauses derived from 16+ Africa-specific documents, SBTi CORPORATE NET-ZERO STANDARD, Paris Agreement, and the SLLP/Transition Loan Principles.
Clause Categories
| Category | Templates | Purpose |
|---|---|---|
| KPI Definition | 4 | Define measurable sustainability metrics |
| SPT Calibration | 3 | Set ambitious, science-based targets |
| Margin Ratchet | 4 | Link financial terms to SPT achievement |
| Reporting | 3 | Annual disclosure obligations |
| Verification | 3 | External assurance requirements |
| Use of Proceeds | 4 | Transition-specific fund allocation |
| Transition Strategy | 3 | Entity-level decarbonization commitments |
Example Clauses
KPI Definition Clause
text
"Key Performance Indicators" or "KPIs" means the sustainability
performance metrics set out in Schedule [X], being:
(a) Carbon Intensity: Scope 1 & 2 GHG emissions per MWh, measured in gCO2e/kWh;
(b) Renewable Capacity: Total installed renewable generation capacity, measured in MW;
(c) Grid Decarbonization: Percentage of electricity from zero-carbon sources.
Each calculated in accordance with the GHG Protocol Corporate Standard.Margin Ratchet Clause
text
The Applicable Margin shall be adjusted as follows:
(a) if ALL SPTs achieved: Margin REDUCED by [X] basis points;
(b) if 2 of 3 SPTs achieved: Margin UNCHANGED;
(c) if fewer than 2 SPTs achieved: Margin INCREASED by [X] basis points.
Standard adjustments: 5-15 bps | Aggressive: 10-25 bpsMargin Ratchet Presets
| Preset | Reduction | Increase | Partial Threshold | Use Case |
|---|---|---|---|---|
| Standard | 5 bps | 5 bps | 2 of 3 SPTs | Investment-grade borrowers |
| Aggressive | 10 bps | 10 bps | All SPTs | Ambitious transition leaders |
| Conservative | 2.5 bps | 2.5 bps | 1 of 3 SPTs | First-time SLL borrowers |
| Asymmetric | 5 bps | 15 bps | 2 of 3 SPTs | Greater penalty for misses |
💡2025 SLLP Updates
The 2025 updates to the Sustainability-Linked Loan Principles now require two-way margin adjustments. Verdex clauses are aligned with these latest requirements.