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Sustainable finance
The Eastern European property group has raised debt for offices as part of a €600m financing package.
Velo Capital, the recently formed group’s credit arm, will target financing opportunities including ‘brown-to-green’ schemes.
The Berlin-based firm says its open-ended credit vehicle is one of the first in Germany to be classified as Article 9.
The bridging lender will provide end-of-term rebates to borrowers that achieve improved energy performance certificate ratings.
The manager has worked with third-party advisers to devise a sustainable lending framework.
The European Central Bank wants lenders under its supervision to get a grip on their exposure to the environmental crisis.
Target returns and sustainability goals can both feature in real estate debt strategies, argue BNP Paribas Asset Management’s Christophe Montcerisier and Nicolas Toupin.
The credit manager has set up a Paris-based debt business focused on lending against assets being readied for a low-carbon economy across continental Europe.
As managers shift to focus on near-term challenges, sustainability and social impact goals are at risk of being deprioritised.
Across the financial and asset management worlds, claims about sustainability are coming under scrutiny. For real estate lenders, ensuring that their approach to ESG-related lending is clear and accountable is becoming imperative.