Under the arrangement, the credit terms of the existing working capital facility offered to Square Group will be linked to renewable energy usage by the conglomerate.Sustainability linked loans aim to improve the borrower’s sustainability profile by aligning loan terms to the borrower’s performance against pre-determined Sustainability Performance Target (SPT) benchmarks. For example, the interest rate under the relevant loan agreement may be reduced where the borrower satisfies a pre-determined SPT threshold or vice versa. By linking the loan terms to the borrower’s sustainability performance, borrowers are economically incentives to make improvements to their sustainability profile over the term of the loan.