Icade secures €300m green loan during coronavirus

French REIT Icade has reinforced its backup lines of credit by signing an innovative green revolving credit facility for €300 mln. The new seven-year facility replaces lines maturing in 2020 for a total of €290 mln.

‘Despite the ongoing health crisis, Icade’s teams have worked hard to finalise the attractive and innovative financial terms of this first green loan, which are contingent upon achieving one of Icade’s priority CSR objectives, namely reducing CO2 intensity,’ the company said in a statement.

The financial terms require a 45% reduction in the carbon intensity of the Office Property Investment Division between 2015 and 2025, measured annually. If the objective is achieved, the margin remains unchanged; while they are reduced in case the target is exceeded and they are increased in case the target is not achieved.

The facility strengthens Icade’s portfolio of fully available credit lines, which currently stands at €1.75 bn, covering nearly four years of debt interest and principal repayments.

‘With this innovative new backup line, which both encourages the achievement of the Office Property Investment Division’s low-carbon objectives and strengthens the Group’s balance sheet, Icade has united financial performance and CSR around a common goal—the responsible growth of the Company, all while reinforcing its financial capacity,’ said Victoire Aubry, CFO of Icade, which is majority owned by the Caisse des dépôts Group.