1glossary_p_1Acceleration

2glossary_p_2a clause in a contract, typically a loan or a bond, allowing a creditor to request earlier repayment of the debt if a stated event occurs.

3glossary_p_3Agent

4glossary_p_4the financial institution acting as a representative of the lenders under a syndicated loan. The agent’s role is to administer the loan, make specified decisions on behalf of the lenders, provide the lenders with the necessary information for their decisions, and enforce the contract in the event of default.

5glossary_p_5Arranger

6glossary_p_6the financial institution engaged by a borrower to facilitate the issuance of a debt in the capital market.

7glossary_p_7Availability Indicators (AIs)

8glossary_p_8technical and operational measures that determine whether a health facility, or part of it, is available for use, which can affect availability-based payments under a PPP.

9glossary_p_9Availability Payment

10glossary_p_10a payment made by a procuring entity to a private partner in a PPP project based on the facility or service being available for use at the agreed performance standards.

11glossary_p_11Bilateral Debt Swap

12glossary_p_12a swap between two (sets of) parties, I.e. the debtor and the creditor (or a group of creditors).

13glossary_p_13Blended Finance

14glossary_p_14the strategic use of international financial institutions and multilateral development banks for the mobilisation of commercial finance towards sustainable development in developing countries.

15glossary_p_15Blue Bond

16glossary_p_16a debt instrument issued by a borrower to finance marine- and ocean-based projects with positive environmental, economic and climate benefits. The green bond concept inspires the blue bond.

17glossary_p_17Bond

18glossary_p_18a tradeable financial instrument representing a debt, issued by sovereigns, state-owned enterprises or corporates in the capital markets.

19glossary_p_19Call Option

20glossary_p_20an option to buy assets at an agreed price on or before a particular date, which can be included in the terms of a bond.

21glossary_p_21Civil Society Organisation (CSO)

22glossary_p_22a non-governmental, non-profit group operating outside of government control, formed by citizens to advance shared interests, provide services, or advocate for social, economic or political causes.

23glossary_p_23Climate Resilient Debt Clause (CRDC)

24glossary_p_24a contractual provision enabling the borrower to temporarily defer debt service payments (principal and/or interest) for a pre-agreed period when a predefined event occurs; also called a natural disaster or debt pause clause.

25glossary_p_25Collateral

26glossary_p_26an asset that a borrower offers as a way for a lender to secure the loan.

27glossary_p_27Commercial Debt Swap

28glossary_p_28is a transaction whereby private sector debt is replaced with a new instrument under more favourable terms (also referred to as a debt conversion).

29glossary_p_29Contingent Liability

30glossary_p_30a potential liability which becomes an actual liability upon the occurrence of an uncertain future event.

31glossary_p_31Contract Monitoring Regime

32glossary_p_32a structured system, processes and tools used by a procuring entity to track, verify and evaluate the private partner’s performance against the obligations set out in the PPP contract.

33glossary_p_33Country Coordinating Mechanisms (CCMs)

34glossary_p_34national multi-stakeholder bodies that coordinate, oversee and submit funding requests for global health programmes by bringing together government, civil society, affected communities, and development partners.

35glossary_p_35Coupon

36glossary_p_36the periodic payment as paid to the holder of a bond.

37glossary_p_37Credit Rating Agency (CRA)

38glossary_p_38an institution that provides investors with information and ratings about a borrower’s ability to meet its obligations.

39glossary_p_39Debt Conversion

40glossary_p_40is a transaction whereby private sector debt is replaced with a new instrument under more favourable terms (also referred to as a commercial debt swap).

41glossary_p_41Debt Restructuring

42glossary_p_42a process where the debtor negotiates with creditors to reduce the loan’s interest rate, extend its repayment term or reduce its balance to avoid default.

43glossary_p_43Debt Sustainability

44glossary_p_44the ability of a government to meet its debt obligations without requiring debt relief or accumulating arrears.

45glossary_p_45Debt Sustainability Analysis (DSA)

46glossary_p_46an assessment that evaluates a country’s ability to meet its current and future debt obligations without incurring repayment difficulties or requiring significant policy adjustments.

47glossary_p_47Debt Sustainability Framework (DSF)

48glossary_p_48a framework for analysing a country’s borrowing decisions and assessing debt sustainability under baseline and stress scenarios.

49glossary_p_49Debt Swap

50glossary_p_50a transaction in which a portion of a country’s existing debt can be acquired at a discount and swapped for SDG/ESG-related goals or investments.

51glossary_p_51Debt-to-GDP Ratio

52glossary_p_52the ratio of a country’s government debt to its GDP, used to assess its ability to repay debt.

53glossary_p_53Development Finance Institutions (DFI)

54glossary_p_54specialised institutions that raise funds to finance development projects or initiatives in developing countries.

55glossary_p_55Discounted

56glossary_p_56debt trading in the secondary market for less than its par value.

57glossary_p_57Eligible Projects

58glossary_p_58a list of projects to which the proceeds of use of proceeds bonds may be applied.

59glossary_p_59Emerging Markets and Developing Economies (EMDE)

60glossary_p_60term used in economics to describe a group of countries that are in a state of rapid growth but still have lower levels of economic development than advanced economies.

61glossary_p_61Environmental Social Governance (ESG)

62glossary_p_62the three central factors commonly used to evaluate the sustainability and ethical impact of an investment.

63glossary_p_63Eurobond

64glossary_p_64an international bond issuance denominated in a currency not native to the country where it is issued.

65glossary_p_65Event of Default

66glossary_p_66a condition defined in a loan or bond agreement that, if it occurs, gives the lender the right to demand immediate repayment.

67glossary_p_67Export Credit Agency (ECA)

68glossary_p_68an institution acting as an intermediary between governments and exporters to issue export financing in the form of credit, insurance or guarantees.

69glossary_p_69First-Loss Partial Guarantee

70glossary_p_70a credit enhancement mechanism under which a guarantor agrees to absorb initial losses on a financing up to a specified amount or percentage, reducing the risk exposure of other creditors.

71glossary_p_71Framework

72glossary_p_72a document drawn up by the issuer outlining the green and/or social characteristics of projects financed by bond proceeds.

73glossary_p_73Gross Domestic Product (GDP)

74glossary_p_74the estimated total value of all finished goods and services produced within a country’s borders in a specific period.

75glossary_p_75Global Health Institution (GHI)

76glossary_p_76an organisation that works across countries to improve health outcomes by providing funding, expertise, research or coordination on major global health challenges.

77glossary_p_77Green Bond

78glossary_p_78a bond whose proceeds are used exclusively for environmentally sustainable projects (also referred to as a climate bond).

79glossary_p_79Health Masterplan

80glossary_p_80a comprehensive, long-term strategic plan that outlines a country’s healthcare priorities, infrastructure needs, service delivery models and investment requirements.

81glossary_p_81International Capital Markets Association (ICMA)

82glossary_p_82a global trade association that promotes well-functioning and sustainable capital markets by developing standards, guidelines and best practices for market participants.

83glossary_p_83ICMA Principles

84glossary_p_84guidance published by ICMA on sustainable finance instruments, including GBP, SBP, SBG and SLBP.

85glossary_p_85Independent Verification Agent (IVA)

86glossary_p_86an external party appointed to objectively assess and verify whether a borrower or issuer has met the pre-defined environmental, social, or performance targets set under a sustainability-linked instrument or similar agreement.

87glossary_p_87Input-Based Spending (IBS)

88glossary_p_88funding that focuses on the resources used rather than the outputs or outcomes achieved.

89glossary_p_89Intermediary

90glossary_p_90the middle entity in a trilateral swap, often performed by an SPV.

91glossary_p_91Issuer

92glossary_p_92a legal entity such as a corporation, investment trust, government or agency that issues securities to finance operations.

93glossary_p_93Key Performance Indicator

94glossary_p_94a measure of financial or operational performance used for monitoring and review.

95glossary_p_95Liability Management

96glossary_p_96procedures and techniques used by bond issuers to buy back, exchange or alter the terms of bonds.

97glossary_p_97Loan Market Association (LMA)

98glossary_p_98a trade body for the European, Middle East and African syndicated loan market that enhances market efficiency by developing standard documentation and providing guidance on best practices.

99glossary_p_99Medium-Term Debt Strategy (MTDS)

100glossary_p_100a debt management strategy that guides a government’s borrowing decisions over the next three to five years, outlining the preferred composition of public debt that balances cost and risk in line with the country’s macroeconomic and financial objectives.

101glossary_p_101Monitoring Results and Verification (MRV)

102glossary_p_102a system that tracks the progress of key performance indicators throughout the life of a sustainable finance instrument.

103glossary_p_103Net Present Value (NPV)

104glossary_p_104the present value of a sum of money in contrast to its future value.

105glossary_p_105Official Development Assistance (ODA)

106glossary_p_106government aid promoting economic development and the welfare of developing countries.

107glossary_p_107Par Value

108glossary_p_108the face value of a bond repayable at maturity.

109glossary_p_109Paris Club

110glossary_p_110an informal group of creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

111glossary_p_111Performance Indicators (PIs)

112glossary_p_112metrics used to evaluate the effectiveness of a health facility’s operations and clinical services (where provided), where failure to meet PIs may trigger contractual consequences for the private partner.

113glossary_p_113Premium

114glossary_p_114the excess value added to the price or cost of a financial asset.

115glossary_p_115Private Sector

116glossary_p_116the part of the economy run by individuals and companies for profit.

117glossary_p_117Private Sector Loans

118glossary_p_118loans granted by commercial banks or funds on specific terms.

119glossary_p_119Procuring Entity

120glossary_p_120a government ministry, state department, state-owned agency, municipal authority or other public authority responsible for planning, designing, tendering and managing a PPP project.

121glossary_p_121Public-Private Partnership (PPP)

122glossary_p_122a long-term arrangement where a private party delivers and finances public infrastructure or services.

123glossary_p_123Public Sector

124glossary_p_124the general government sector plus government-controlled entities engaged in commercial activities.

125glossary_p_125Public Sector Debt

126glossary_p_126the aggregate of central government and SOE debt.

127glossary_p_127Quality Indicators (QIs)

128glossary_p_128metrics used to assess the overall quality of services, infrastructure, equipment or operations delivered by a health facility.

129glossary_p_129Refinancing Risk

130glossary_p_130risk associated with an obligation that may not be refinanced or may be refinanced only at a higher cost.

131glossary_p_131Request for Proposal (RfP)

132glossary_p_132an invitation to submit a proposal for a project or mandate.

133glossary_p_133Return on Investment

134glossary_p_134a performance measure that evaluates an investment’s profitability by comparing net profit to cost.

135glossary_p_135Risk Allocation

136glossary_p_136a process of identifying the risks in a PPP project and assigning each risk to the party - public or private - that is best able to manage, mitigate or absorb it.

137glossary_p_137Second Party Opinion (SPO)

138glossary_p_138an independent assessment confirming a sustainable finance framework or instrument’s alignment with international standards such as ICMA and LMA Principles.

139glossary_p_139Secondary Market

140glossary_p_140a market for the resale of already issued debt securities.

141glossary_p_141Social Bond

142glossary_p_142a bond financing or refinancing of social projects that achieve positive social outcomes.

143glossary_p_143Social Bond Principles (SBPs)

144glossary_p_144ICMA’s Social Bond Principles provide guidelines on structuring, disclosure and reporting.

145glossary_p_145Social Loan Principles

146glossary_p_146LMA’s Social Loan Principles provide guidelines on structuring, disclosure and reporting.

147glossary_p_147Sovereign

148glossary_p_148a government guarantee of the obligations of a third party.

149glossary_p_149Special Purpose Vehicle (SPV)

150glossary_p_150a legal entity created for a specific purpose, often used as an intermediary in a trilateral swap.

151glossary_p_151State-owned Enterprise (SOE)

152glossary_p_152a legal entity wholly or partially owned by a government for commercial activities.

153glossary_p_153Sustainable Development Goals (SDGs)

154glossary_p_154a set of 17 interconnected global objectives adopted by the United Nations to guide countries toward ending poverty, protecting the planet and ensuring prosperity for all by 2030.

155glossary_p_155Sustainability-Linked Bond Principles (SLBP)

156glossary_p_156ICMA’s Sustainability-Linked Bond Principles provide guidelines on structuring, disclosure and reporting.

157glossary_p_157Sustainability-Linked Bond (SLB)

158glossary_p_158a bond whose characteristics vary depending on whether the issuer meets ESG/SDG objectives.

159glossary_p_159Sustainability-Linked Loan Principles (SLLP)

160glossary_p_160LMA’s Sustainability-Linked Loan Principles provide guidelines on structuring, disclosure and reporting.

161glossary_p_161Sustainability-Linked Financing

162glossary_p_162financial instruments, such as bonds or loans, where financial characteristics (e.g. interest rate or margin) vary depending on the issuer or borrower’s achievement of pre-defined environmental, social or governance (ESG) performance targets.

163glossary_p_163Sustainability Margin Adjustment

164glossary_p_164is a flexible interest rate feature in SLLs where the borrower’s loan interest rate (margin) goes up or down (a “ratchet”) based on achieving predefined ESG targets, known as Sustainability Performance Targets, linked to KPIs. Meeting targets earns a discount (lower rate), while missing them can trigger a premium (higher rate), incentivising companies to improve their sustainability performance financially.

165glossary_p_165Sustainability Performance Targets (SPT)

166glossary_p_166measurable improvements in KPIs for sustainability-linked instruments.

167glossary_p_167Syndicated Loan

168glossary_p_168a loan issued by a group of lenders with standard terms represented by an agent.

169glossary_p_169Tender Offer

170glossary_p_170a public offer to buy securities from holders at a specific price at a particular time.

171glossary_p_171Thematic Bond

172glossary_p_172a financial instrument allowing investors to finance specific themes such as climate, health or education.

173glossary_p_173The Nature Conservancy

174glossary_p_174a global environmental organisation managing debt-for-nature swaps since the 1980s.

175glossary_p_175Total Health Expenditure

176glossary_p_176the sum of public and private spending on health, including preventive and curative services, family planning and nutrition, but excluding water and sanitation.

177glossary_p_177Trilateral Swap

178glossary_p_178a structure where an intermediary buys outstanding debt at a discount with new insured or guaranteed debt issued at par.

179glossary_p_179Universal Health Coverage

180glossary_p_180a health system which aims to ensure equitable access, financial protection, and quality care for everyone, regardless of income, location, or social status.

181glossary_p_181Use of Proceeds (UoP) Debt Instrument

182glossary_p_182a debt obligation where proceeds are earmarked for a specific eligible use.

183glossary_p_183Value-Based Healthcare

184glossary_p_184an approach prioritising improved patient outcomes relative to resources spent.

185glossary_p_185Value for Money

186glossary_p_186achieving the best balance between cost, quality and risk over a project’s life cycle.

187glossary_p_187Viability Gap Funding

188glossary_p_188a public financial support mechanism providing a capital grant to make a socially beneficial but financially unviable project attractive to private investors.