CPIPG Signs First Sustainability-Linked Loan
CPI Property Group SA
CPI Property Group (CPIPG), a major owner of income-generating real estate in Europe, has announced that it has secured its first Sustainability-linked Loan through a bilateral facility with MUFG.
“Once again, CPIPG has demonstrated our ability to access diverse and innovative sources of financing,” said David Greenbaum, CFO of CPIPG.
CPI Property Group has obtained a senior unsecured loan of €100 million with a bullet maturity of 5 years, featuring a sustainability "step up/step down" element based on the Group's sustainability targets. The loan's pricing is comparable to the Group's existing financing and will be used for debt repayment and general corporate purposes.
Starting from 2023, the loan's margin will step up or step down annually based on CPIPG's goal to reduce the greenhouse gas (GHG) emissions intensity of its property portfolio by 32.4% through 2030 compared to the 2019 baseline.
By the end of 2026, CPIPG aims to decrease GHG emission intensity by 20.6%, measured in tonnes of CO2 equivalent per square metre of the property portfolio.
CPIPG's targets were assessed by Sustainalytics, an independent second-party opinion provider, as "ambitious" with "very strong" key performance indicators aligned with the Paris agreement.