Derwent London agrees pioneering green terms for €523m loan

Derwent London, the largest London-focused REIT, has agreed and signed a new five-year £450 mln (€523 mln) revolving credit facility from HSBC UK, Barclays and NatWest.

The new financing includes a ‘green’ tranche of £300 mln, making it the first revolving credit facility provided to a UK REIT that meets the Loan Market Association's green loan principles, Derwent 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,' said Paul Williams, chief executive of Derwent London.

'In the last five years we have invested over £750 mln and this facility will support the next generation of Derwent’s buildings while recognising our social and environmental obligations to all our stakeholders,' Williams added.

The green tranche is available to fund activities that satisfy the criteria set out in Derwent’s newly established green finance framework. This encompasses the group's sustainability objectives, and outlines how Derwent intends to fund grade A commercial projects with improved energy efficiency and reduced consumption of natural resources.

Schemes already earmarked under the criteria include the development or refurbishment of commercial and residential buildings such as 80 Charlotte Street W1 and Soho Place W1.

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.

Damian Wisniewski, chief financial officer of Derwent London, concluded: 'Linking part of our financing to our projects’ green credentials is an important step towards understanding how we can help reduce our impact upon climate change. This new five-year facility will also increase our weighted average debt maturity.'

 

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