Unite Students has signed a £450m revolving credit facility linked to its sustainability targets.
The unsecured facility, from HSBC, NatWest and Royal Bank of Canada, is Unite’s first sustainability-linked loan.
It will incorporate three sustainability-linked performance targets, tied to Unite’s sustainability strategy which was launched in April.
Dependent on its performance against the targets, there will be a 2.5bps premium or reduction to the base margin.
An independent external reviewer will assess Unite on its transition to net zero carbon, improvements in the EPC ratings of its properties and the value of its social initiatives.
The RCF will have an initial term of three and a half years, but could be extended by two years at Unite’s request.
Unite CFO Joe Lister said: “Our first sustainability-linked loan is a significant milestone for our sustainability strategy. We have clear objectives to become a net zero carbon business by 2030, while delivering a positive social impact through our work with our employees, students and local communities. The performance targets further incentivise the group to accelerate decarbonisation and improvements in energy efficiency and underline our growing commitment to social initiatives.”
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