UK logistics specialist Tritax Big Box REIT has signed a £500 mln (€577 mln) sustainability-linked unsecured revolving credit facility (RCF) with a syndicate of its existing relationship banks and new lenders.
The new RCF has an initial five-year term which may be extended to a maximum of seven years at the Company’s request, subject to lender consent. The New RCF also contains an uncommitted £200 mln accordion option.
The RCF is fully available for general corporate purposes and is being used to refinance the company’s existing £450 mln revolving credit facility, which was due to mature in December 2024.
Frankie Whitehead, partner and CFO for Tritax, commented: 'We are pleased to announce our new sustainability-linked revolving credit facility.
'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 new facility further enhances our strong balance sheet and provides additional flexibility to finance our strategy. We are delighted with the continued support of our core relationship lenders as well as the participation of new lenders in the facility.'
Alan Somerville, ESG Director for Tritax Big Box REIT, commented: '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 new RCF retains the same pricing as the existing RCF, with an opening margin of 120bps.
It incorporates four sustainability-linked performance KPIs which align with the firm's updated ESG targets and sustainability strategy. The KPIs specify any new developments should have a minimum BREEAM certification, a reduction in embodied carbon and a minimum biodiversity net gain within the development footprint.
It also specifies that EPC ratings should be improved across the investment portfolio. The company has the opportunity to improve the margin, subject to performance against these KPIs.
Following the refinancing, the average debt maturity across the company’s loan arrangements extends from 4.6 years to 5.4 years, Tritax has more than £450 mln of available liquidity and 95% of drawn debt is either fixed or hedged.
The syndicate for the New RCF comprises ABN Amro Bank, Bank of China, Barclays Bank, BNP Paribas, China Construction Bank Corporation, JPMorgan Chase Bank, Santander Corporate & Investment Banking, SMBC Bank International and The Royal Bank of Scotland International Limited.
Barclays Bank acted as agent and documentation coordinator for the New RCF. BNP Paribas and Santander Corporate & Investment Banking acted as the joint sustainability coordinators for the New RCF.
The company was advised on the transaction by Lazard & Co.
