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The good practices relate to –
Origination and refinancing based on sound business premise
- Debt repayment capacity assessment
- Dividend Recapitalisations
- Enterprise Values
EBITDA and loan documentation transparency
- EBITDA complexity and opacity
- Transparency on covenant limitations
Strengthening alignment of interest from loan origination to end investors
- Transparency and fairness during underwriting and syndication
- Alignment of interest between underwriting entities and investors
Addressing interests of different market participants throughout the intermediation chain
- Reducing restrictions on transferability of loans
- Managing conflicts of interest where Private Equity sponsors also act as lenders
- Managing conflicts of interest in management of CLOs
Disclosure of information on an ongoing basis
- Disclosure in CLOs
- Disclosure on underlying loans