The five year facility includes a £300m loan that meets the Loan Market Association’s Green Loan Principles. The deal is structured so that, if Derwent hits agreed targets, the margin will become cheaper for the company.
“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, Derwent's chief executive officer, in a statement.
The green tranche was signed using Derwent’s newly published green finance framework. Under the framework, Derwent will fund real estate projects that improve energy efficiency and reduced consumption of natural resources.
Two such projects are in central London’s Charlotte Street and Soho Place, which Derwent is hoping to get verified green building certifications for.
As well as adding to the company’s green credentials, the green tranche extends the firm’s weighted average debt maturity, according to Derwent.
Barclays, HSBC and NatWest Markets provided the facility. HSBC was agent and green loan coordinator.
“This funding demonstrates the growing demand for green financing and the continued focus on sustainability across the real estate sector,” said David Stephen’s head of corporate real estate, London, at HSBC.