Housebuilder Berkeley Group is planning to issue £400 million of ten-year “Green Bonds” guaranteed by the company at an interest rate of 2.5% per annum from August 11. The bonds will be used to finance the development of its energy-efficient homes.
Berkeley said the Green Bonds would be used in alignment with its Green Bond Framework. The Framework supports the firm’s sustainability commitments outlined in its “Our Vision 2030” strategy launched earlier this year. The strategy comprises ten priorities including customers, quality, climate action and nature.
The proceeds of the Bonds will be used “specifically in connection with the development of green buildings (energy-efficient homes) on [the company’s] complex large-scale regeneration sites, where the Berkeley Group is transforming neglected brownfield land into flourishing, well-connected, nature-rich, low carbon neighbourhoods and communities,” Berkeley said in a statement.
Richard Stearn, Berkeley’s chief financial officer, added: “We have been delighted by the strength of institutional demand for our debut issue of green bonds. This demonstrates that investors recognise the resilience of Berkeley’s unique long-term operating model and, through our new Green Bond Framework, the value to the wider environment of our regeneration activities.”
Green Bonds are used to finance new and existing projects that offer environmental benefits. Berkeley said that it saw the bonds as an important aspect of its “ongoing financing and capital strategy and will be followed by a restructuring of its existing bank facilities.”
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