Slaughter and May advised the Unite Group plc (“Unite”) on a £450 million sustainability-linked unsecured revolving credit facility (the “Facility”). The Facility matures in 2025 with an option for two one-year extensions, and contains a sustainability-linked margin ratchet based on performance against three sustainability targets which align with the group’s sustainability strategy. These include annual targets based on:
- supporting the group's transition to net zero carbon by 2030, through reduction in scope 1 and 2 carbon emissions for operational buildings;
- improvements in the EPC ratings of properties in England and Wales with a target of all properties reaching at least C rating by 2027; and
- the value of Unite's contributions to social initiatives aimed at improving access to post-18 education, enhancing employment prospects for graduates and benefiting local communities.
The Facility is Unite’s first sustainability-linked loan and follows the publication of the group's sustainable finance framework in April 2021.