Tritax Big Box has signed a £500m sustainability-linked revolving credit facility.
The unsecured RCF, which has an initial five-year term, extending to a maximum of seven years, was signed with a syndicate of its existing relationship banks and new lenders.
The new RCF also contains an uncommitted £200m accordion option.
The facility will be used to refinance the REIT’s existing £450m revolving credit facility, which was due to mature in December 2024.
The pricing is the same as its existing RCF, with an opening margin of 120bps.
However, the new RCF incorporates four sustainability-linked KPIs, which align with the REIT’s updated ESG targets and sustainability strategy.
ESG director Alan Somerville said: “This new RCF exemplifies our strong leadership in sustainable logistics. Our ambitious targets underline our commitment to deliver strong, sustainable growth as a forward-thinking, responsible company.”
The KPIs specify that any new developments should have a minimum BREEAM certification, a reduction in embodied carbon and a minimum biodiversity net gain.
They also require that EPC ratings should be improved across the investment portfolio.
Under the terms, the REIT has the opportunity to improve the margin, subject to performance against these KPIs.
Chief executive Frankie Whitehead added: “This transaction is a significant milestone, following our inaugural green bond issue in 2021, and reinforces our intent to continue to align the company’s financing with its sustainability objectives.”
The refinancing extends Tritax Big Box’s average debt maturity from 4.6 years to 5.4 years.
The lenders syndicate comprised ABN Amro, Bank of China, Barclays, BNP Paribas, China Construction Bank, JPMorgan Chase, Santander, SMBC Bank International and Royal Bank of Scotland.
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