(Alliance News) - FTSE 250-listed Derwent London PLC on Thursday said signed a five-year GBP450 million credit facility which includes a "green" tranche worth GBP300 million.
The agreement makes Derwent the first UK real estate investment trust to secure a revolving credit facility that meets the Loan Market Association's green loan principles. The LMA framework ensures that all green loans should be used for environmentally sustainable objectives.
The financing will be provided by HSBC Holdings PLC, Barclays PLC and Royal Bank of Scotland Group PLC-owned NatWest.
Derwent said: "The green tranche is available to fund activities that satisfy the criteria set out in Derwent's newly established 'Green Finance 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 development of its 80 Charlotte Street and Soho Place projects, both in London, are included in the framework, Derwent added. The trust must also publish an annual report to confirm that the financing is still being used to meet green loan principles.
Chief Executive Paul Williams said: "Sustainability is fundamental to our business at Derwent London, and it helps drive the creation of some of London's most innovative office space. In the last five years we have invested over GBP750 million and this facility will support the next generation of Derwent's buildings while recognising our social and environmental obligations to all our stakeholders."
Derwent shares were 0.8% higher at 3,592.00 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Barclays (BARC)
HSBC Holdings (HSBA)
Derwent London (DLN)
