Lloyds Bank has issued the first loan from its £1bn green lending scheme.
Fund manager Trinova secured £17m of debt from the bank for its £30m acquisition of Vulcan House in Sheffield, South Yorkshire. The 120,000 sq ft building is fully let to the government.
The four-year loan reflects a 56.7% LTV.
Lloyds’ green initiative was started to motivate landlords to cut their carbon footprint by issuing loans that are up to 20bps cheaper if developers fulfil a list of sustainable criteria. In order to qualify for the discount, Vulcan House will have to keep its “excellent” BREEAM rating.
Lloyds estimates the scheme could lead to 110,000 tonnes of carbon emission cuts – more than the annual energy usage of 22,000 households.
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