(Credit: Canva Pro)CPI Property Group (CPIPG), a major European real estate company, has acquired a Sustainability-linked Loan in its first joint facility with MUFG. Demonstrating the company's capability to tap into new and progressive financing sources. According to CFO David Greenbaum, “Once again, CPIPG has demonstrated our ability to access diverse and innovative sources of financing."
The $100 million senior unsecured loan, which comes with a bullet maturity of five years, is priced similarly to the company's current financing arrangements. It includes a sustainability "step up/step down" provision based on CPIPG's sustainability targets. The funds will be utilized for general corporate purposes and debt repayment.
CPIPG hopes to reduce the intensity of its greenhouse gas emissions by 32.4% by 2030, compared to the 2019 baseline. To accomplish this, the loan's margin will step up or down on a yearly basis from 2023 on. By the end of 2026, the company aims to decrease greenhouse gas emission intensity by 20.6%, measured in tonnes of CO2 equivalent per square meter of the property portfolio.
Sustainalytics, an independent second-party opinion provider, has rated CPIPG's targets as "ambitious," with "very strong" key performance indicators aligned with the Paris Agreement. The move highlights the company's commitment to sustainability and supports its efforts to achieve its targets.
