UK: Unite Students has signed a £450 million sustainability-linked unsecured revolving credit facility from HSBC, NatWest and Royal Bank of Canada.
The facility incorporates three sustainability-linked performance targets. These include annual targets based on supporting the group’s transition to net zero carbon by 2030, through reduction in scope 1 and 2 carbon emissions for operational buildings, improvements in the EPC ratings of properties in England and Wales with a target of all properties reaching at least C rating by 2027, and the value of Unite’s contributions to social initiatives.
Dependent on performance against the targets, there will be a 2.5bps premium or reduction to the base margin. The facility has an initial term of three and a half years, which may be extended by a maximum of a further two years at Unite’s request, subject to lender consent. The credit facility will be used for general corporate purposes and is an amendment and extension of Unite’s existing bank debt facilities, which were due to mature in November 2022.
Unite Students 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.”
