GPE secures new €613m ESG-linked credit facility

Great Portland Estates (GPE) has secured a new £525 mln (€613 mln) revolving credit facility (RCF) tied to ESG performance. 

GPE

This unsecured facility, provided by four of GPE's current banks, has an initial five-year term (with a potential two-year extension) and a margin of 105 basis points over SONIA. The interest rate can adjust based on GPE's achievement of ESG key performance indicators, similar to their other banking agreements.
This new RCF replaces GPE's previous £450 mln (€526 mln) facility and will be used for general corporate purposes, including paying off a £75 mln (€88 mln) term loan that had a higher interest rate (175 basis points over SONIA).
Additionally, GPE has extended the maturity of its existing £150 mln (€175 mln) ESG-linked RCF to October 2028. Despite these changes, the Group's total bank facilities remain at £675 mln (€789 mln). These refinancing efforts have successfully increased GPE's weighted average debt maturity by roughly two years when fully utilized.
NatWest, Santander, Bank of China, and Lloyds Bank are the participating banks, with NatWest coordinating documentation and Santander acting as the sustainability coordinator.
Nick Sanderson, CFOO, commented: “We are delighted to have arranged our largest ever bank facility with existing relationship banks, demonstrating strong support for our focused strategy. Along with our existing £150 mln RCF, our bank debt facilities provide further flexibility for us as we allocate capital into our development and refurbishment pipeline, delivering premium spaces for our customers.”