UK-focused responsible investment manager Downings’s Property Finance Team received a £75 mln (€86 mln) loan from HSBC for its development finance business.
This sustainability-linked loan complements Downing's existing retail and institutional capital and will allow it to continue to provide development finance to SME developers in the UK.
At the same time it will also incentivize and reward borrowers for achieving pre-determined sustainability performance objectives.
Downing's development finance offering includes loans that are based on the Loan Market Association's Sustainability Linked Loan Principles.
Downing's ESG scorecard considers a range of criteria, including physical risk, embodied carbon, energy and operational carbon, water, waste, biodiversity and habitat, and certifications.
Parik Chandra, partner and head of specialist lending at Downing, said: ‘This new facility is a testament to the team and track record we have built in the development finance sector. We continue to grow and diversify our funding sources and are delighted that this facility with HSBC includes sustainability targets which we believe are of increasing importance to a range of investors.’
London-based Downing typically lends between £1 mln (€1.1 mln) and £30 mln (€34.4 mln) to experienced developers with the ability to go higher by exception. It lends up to 90% loan-to-cost and 70% loan-to-gross-development value.
