ING grants first sustainable loan to Spanish REIT
ING has granted a 75.7 million euros sustainable improvement loan to Colonial. The loan, which matures in December 2023, is linked to the company's performance in this area. Therefore, the interest will vary according to Colonial’s ESG rating measured by the sustainability agency GRESB.
It is the first loan of this kind granted to a Spanish real estate company and Colonial's first sustainable transaction in the market. The real estate company will use the proceeds to finance the LEED Gold certified building located in Madrid, which is rented to the law firm Cuatrecasas.
ING has a leading and innovative positioning in sustainable financing. In April 2017 it became the first bank worldwide to grant a sustainable improvement loan. It was also a pioneer in Spain with the 330 million euro sustainable loan to Naturgy in July 2017. Since then, it has participated with this type of loan for other Spanish companies such as Iberdrola or Cellnex.
Colonial, leader in the prime office market, has a strong commitment to implement the best practices in order to achieve the maximum efficiency in its buildings and reduce its impact on the environment. The objective is to have a portfolio of highly efficient buildings that consume fewer resources and reduce CO2 emissions, materials consumption, amount of waste produced and water used.
"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", said Iñigo Churruca, ING's Head of Corporate and Investment Banking for Spain and Portugal.
"This transaction recognizes 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", said Carmina Ganyet, Corporate Managing Director of Colonial.