BNP Paribas has agreed the first risk-free rate, sustainable-linked loan, with a £50m facility for Metropolitan Thames Valley.
The three-year revolving credit facility follows similar deals with Peabody, Optivo and L&Q, with interest rates tied to social impact performance.
It is believed to be the first sustainable RFR loan, as the Financial Conduct Authority transitions away from LIBOR.
BNP will provide a margin discount to MTVH if it achieves targets to reduce greenhouse gas emissions across its residential portfolio and own business activities.
Donald McKenzie, director of corporate finance at MTVH, said: “By meeting sustainability targets to help fund our business we can cut the cost of our debt, further build our financial strength and free up more funds to achieve our ambition of providing more affordable homes and supporting our residents and customers to live well.”
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