Colonial has become the first Spanish real estate company to agree a sustainable loan transaction after securing a €75.7m loan from ING.

Financial firm ING said the interest on the loan will vary according to Colonial’s environmental, social and corporate governance (ESG) rating measured by the sustainability agency GRESB. The loan matures in December 2023.

The deal is the first loan of this kind granted to a Spanish real estate company and Colonial’s first sustainable transaction in the market, ING said.

The Spanish REIT or Socimi will use the proceeds to finance its building in Madrid.

Iñigo Churruca, ING’s head of corporate and investment Banking for Spain and Portugal, said: “This deal not only reinforces ING’s extensive experience in financing but also shows our commitment to foster corporate sustainability.

“Colonial’s loan is a good example and strengthens the sustainable improvement loan as a product that, after being driven by ING, is progressively becoming a market standard within corporate lending.”

Carmina Ganyet, corporate managing director of Colonial, said: “This transaction recognises Colonial Group’s high commitment with sustainability.

“Currently the company has more than 90% of our assets with an energy certification at the highest levels leading the sector in Europe as well as high corporate ratings in terms of ESG.”