Entra secures €129m sustainability-linked loan from NIB

Nordic office property owner, manager and developer Entra has secured a 12-year, NOK 1.5 bn (€128.7 mln) sustainability-linked loan from the Nordic Investment Bank (NIB).

Sonja Horn

This marks NIB's first sustainability-linked loan in the real estate sector.

The loan will support Entra's efforts to reduce greenhouse gas emissions across its new developments and existing properties, aligning with the company's commitment to the Paris Agreement's 1.5°C target. Entra's short and long-term emission reduction goals have been approved by the Science Based Targets initiative (SBTi).

The interest rate on this loan is tied to Entra's performance in reducing "upfront embodied emissions" from new construction and major renovations, as well as maintaining operational greenhouse gas emissions from its property portfolio at or below base-year levels. All these performance indicators are either validated by the SBTi or come from Entra's SBTi-approved 2030 emission reduction plan.

Sonja Horn, CEO, Entra, said: "NIB's first sustainability-linked loan to the real estate sector is a clear acknowledgement of Entra's long-term commitment to reduce carbon emissions and demonstrates how our strategy can generate tangible commercial value. The loan's favourable characteristics further strengthen our financial position and support targeted investments to reduce emissions across both new developments and the existing portfolio."

Entra owns and manages around 80 properties, totalling about 1.3 million m2, primarily located in the Greater Oslo area, Bergen, and Stavanger.