The financing includes a ‘green’ tranche of £300 million, making it the first revolving credit facility provided to a UK REIT that meets the Loan Market Association Green Loan Principles (“Green Loan Principles”).
The green tranche is available to fund activities that satisfy the criteria set out in Derwent’s newly established ‘Green Finance Framework’ (the “Framework”). This describes the Group’s sustainability objectives and outlines how Derwent intends to fund projects that will deliver first class working, amenity and outdoor spaces, improved energy efficiency and reduced consumption of natural resources. The Framework has been externally reviewed to ensure compliance with the Green Loan Principles.
Derwent London will be required to publish an independently verified report annually confirming that the green loans and the Framework continue to satisfy the requirements of the Green Loan Principles. Derwent London will also provide qualitative and quantitative environmental performance reporting of eligible projects in its annual Responsibility Report.
Commenting on the transaction, Real Estate Finance Partner, William Oliver said: "It is fantastic to have worked with HSBC, Barclays and Natwest on such an important and market-leading transaction. We are sure that this will be seen as a ground breaking facility as green issues, the environment and sustainability become more and more important in business and society in general."
The Pinsent Masons team comprised lead partner, William OIiver and solicitor Fergus O’Doherty. Slaughter and May (Matthew Tobin and James Costi) acted for Derwent London.