coupon depends on if the issuer attains some sustainble targets. Recent phenomenon SLBs differ in important dimensions from Green Bonds1. SLBs can finance general purpose expenses• Use of proceeds for predefined environmental projects not a precondition of an SLB2. Payment structure of SLBs contingent on issuer attaining KPI targets over pre-specified period• Most common form: coupon "penalty" or "step-up margin" if target is not reached by issuer3. KPI targets are not limited to environmental issues (can cover general environmental, social, and/or governance issues)

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