CBRE Global Investors has closed a sustainability-linked revolving credit facility (RCF) with Dutch bank ABN Amro, where the levels of interest payment are yoked to one of its fund's ESG performance.
The €45 mln plus €15 mln accordion facility is for the CBRE European Industrial Fund (EIF), and will be secured against a selection of EIF properties at a loan to value of 40%.
The sustainability aspect means that the loan has pre-agreed indicators aligning the loan with EIF’s ESG strategy for its portfolio, and its sustainable development goals (SDG). The fund’s achievement of annual performance targets directly influences the interest margin (positively and negatively) under the facility agreement.
This is the first sutainability-linked loan that has been arranged for EIF which meets the ESG strategy of the fund and the requirements of its investors.
Aleksandra Njagulj, global head of ESG, CBRE Global Investors, commented: 'CBRE Global Investors embed environmental, social and governance (ESG) practices in all facets of our investment management. We act to support the United Nations’ Sustainable Development Goals (SDGs), focusing on those where we can achieve material impact.
'In this case, the climate change mitigation led the formulation of indicators and targets. We have also called on third-party frameworks such as Breeam and GRESB to add a layer of independent performance measurement.'
The sustainability performance targets are focused on four key indicators, all aimed at continual improvement across the portfolio, which include the installation of on-site renewable energy technology (PV); the installation of energy efficient lighting (LED); operational green building certification, and energy efficiency rating.
The sustainability performance measurement is assured by an independent auditor or an external sustainability rating agency.
Axel Sibmacher van Nooten, managing director at ABN Amro, said: 'For ABN Amro the support we can provide to our clients to enhance their sustainability effort is of strategic importance. As such we are very pleased that we have had the opportunity to contribute to the sustainability goals of the EIF, by closing this Sustainable RCF.'
The CBRE EIF is an unlisted, semi-open ended fund investing in logistics platforms and cross dock assets in strategic locations in European markets with a core profile.
