Slaughter and May advised Derwent London as first UK REIT to sign green revolving credit facility31 Oct 2019
Slaughter and May advised Derwent London plc (“Derwent”) in relation to its new five-year £450 million revolving credit facility. The facility was arranged by HSBC UK, Barclays and NatWest, with HSBC acting as facility agent.
The financing includes a ‘green’ tranche of £300 million, which Derwent and the arrangers have stated makes it the first revolving credit facility provided to a UK Real Estate Investment Trust (“REIT”) that meets the LMA 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 Derwent 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. These include the development or refurbishment of commercial and residential buildings (such as 80 Charlotte Street W1 and Soho Place W1) that target and receive minimum third-party verified green building certification, resulting in measurable improvements and positive environmental impacts. The Framework has been externally reviewed to ensure compliance with the Green Loan Principles.
Contacts: Matthew Tobin (partner), James Costi (associate)
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