Vesteda amends financing into a sustainability-linked financing
On the 8th of April Vesteda and its banks signed an agreement that will amend the € 700 million revolving facility agreement, into a sustainability-linked revolving facility agreement. By this amendment, the interest margin is dependent on our sustainability performance in the coming years. The interest margin will be linked to achieving four sustainability objectives: GRESB score, solar panels installation, % of green energy labels, and emission reduction of our car fleet.
Frans Baas, Vesteda’s treasure explains: “The four KPI’s match the sustainability goals of Vesteda’s 2021-2025 business plan. If we meet the majority of these KPI’s, we obtain a reduction in the interest margin. On the other hand, the interest margin will be increased by the banks if we fail to meet these KPI’s. This agreement rewards the achievement of our ambitious goals. At the same time our sustainability performance will further improve.
Vesteda arranged the original financing in 2018 with its banks ABN AMRO, BNP Paribas, Deutsche Bank, ING, Rabobank, and SMBC. The maturity of this financing remains unchanged at June 1, 2025. The facility serves as a back-stop for the Euro Commercial Paper program and is currently undrawn.
Frits Vervoort, CFO Vesteda: “We would like to embed our sustainability goals in our financing agreement. Following our green bond and green private placement, and the EIB financing, we have obtained this sustainable bank financing. This is our next step to obtain a sustainable funding structure that matches our sustainable profile. We wish to thank our bankgroup that supports us in our journey.”