Lloyds Bank Commercial Banking has arranged a €600 million syndicated financing for French REIT Unibail-Rodamco, priced against ‘green’ performance criteria.
The revolving credit facility has a five-year term, with two one-year extension options. It will enable Unibail to refinance a 2011 debt facility and will provide the Paris-based company with liquidity for general corporate purposes.
Lloyds did not disclose the identities of the other lenders in the syndicate, but said that the facility was increased from a launch amount of €500 million to €600 million due to a substantial amount of oversubscription.
For the first time for a facility of this size, the interest rate margin has been priced against three sustainable ‘key performance indicators’ as well as in reference to the company’s long-term credit ratings.
John Feeney, managing director and global head of commercial real estate at Lloyds Bank Commercial Banking, said the loan “not only brings other banks into the green funding model we established, but also leverages our leading capital markets expertise”.
The KPIs follow the principles of Lloyds’ established Green Lending Initiative and will be adopted by other lenders in the syndicate. The Green KPIs are based around Unibail-Rodamco’s own ‘Sustainability Vision’ and ‘Better Places 2030’ corporate strategies.
“This ‘green’ line is a new achievement for Unibail-Rodamco and reinforces the pioneering position of the group both in terms of sustainability and financing, after the successful issuance of Green Bonds in 2014 and 2015. The transaction comes six months after the announcement of the group’s new CSR strategy, ‘Better Places 2030’,” said Christophe Cuvillier, chairman of the management board and chief executive officer of Unibail-Rodamco.