Last July, Lloyds Banking Group provided Bruntwood SciTech, a joint venture between Bruntwood and Legal & General, with a £185m green funding loan.
The deal comprised a £60m development loan and a £125m investment loan. Bruntwood SciTech agreed to use the development loan to develop offices with a BREEAM ‘Excellent’ rating and invest £3.5m across its portfolio on environmental improvements. It also agreed to reduce the energy intensity of its portfolio by more than 10% over the three-year loan.
It was a significant deal for Lloyds’ green lending initiative, which was set up in 2016. The bank has lent more than £1bn under the initiative, which offers borrowers a 20-basis-point discount on their margin if they agree to ‘green covenants’. These are assessed externally by Trucost, part of S&P Global.