LendInvest has published a green bond framework, aligned with the ICMA Green Bond Principles, supported by a second party opinion from ratings agency S&P Global Ratings.
Proceeds from the bonds will be used to finance or refinance loans for eligible green projects including the construction and purchase of assets compliant with the high energy efficiency standards in the UK property market, or enhancements to improve the energy performance of existing properties.
So far, the specialist lender LendInvest has issued three retail-eligible bonds, the latest of which was issued in July 2022 at 6.5 per cent due 2027.
The green bond framework is designed to accelerate the allocation of capital to eligible retrofit projects in the UK in an effort to decarbonise the UK’s housing stock.
LendInvest achieves carbon neutrality
LendInvest has also achieved carbon neutrality as a business for the last financial year. The business’ total greenhouse gas emissions were offset through a number of emission reduction projects.
These projects included supporting renewable energy, reforestation, improved water filtration and sustainable building efforts, and align with LendInvest’s ESG strategy and a range of the UN’s Sustainable Development Goals that are focused on climate action, as well as the Paris Agreement in limiting mean global warming to well below two degrees Celsius above pre-industrial levels.
Hugo Davies, chief capital officer at LendInvest, said: “Given the built environment is responsible for a large proportion of emissions, it is imperative that our industry works to make real, tangible progress in improving energy efficiency and reducing the environmental impact of real estate.
“We are delighted to share that for the first time, our green bond framework will allow all types of investors to be at the forefront of this change as we seek to invest in retrofit projects through green bonds in the future.”
Earlier this week, Specialist Lending Solutions reported that LendInvest has launched a new stepped bridge product, where rates will increase at intervals throughout the term of the loan.
Nick is a long-time corporate and personal finance journalist and editor. He is managing editor of AE3 Media
