(Alliance News) - Paragon Banking Group PLC on Thursday said it has completed a GBP150.0 million green bond sale.
The ten-year bonds are priced at 4.375% for the first five years. The proceeds will be used for green loans that incentivise landlords to mitigate the effects of climate change, Paragon said.
The West Midlands-based provider of mortgages and of commercial and personal loans concurrently bought back GBP130.9 million of 7.25% bonds, ahead of their scheduled optional call date in September.
Chief Executive Nigel Terrington said: "We are delighted to have received overwhelming support from the investment community on our plans to put sustainable lending at the heart of our strategy."
Shares in Paragon were down 0.3% to 455.20 pence in London. The FTSE 250 index, of which Paragon is a constituent, was down 0.9%.
By Ivan Edwards; ivanedwards@alliancenews.com
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Paragon Group (PAG)