Travers Smith LLP has advised RBS International, Jersey Branch (RBSI) on a €210 million sustainability-linked revolving credit facility provided to Europa Capital, on behalf of its latest value add fund, Europa Fund VI. This is the largest sustainability-linked loan RBS International has provided in the real estate sector.
The facility includes margin incentives conditional on sustainability-linked targets, including improved waste diversion, the use of green energy and minimum EPC ratings of C for the Fund’s major refurbishment and redevelopment projects.
Europa Capital is a dedicated real estate investment manager focused on the European markets. Since its formation in 1995, Europa Capital has collectively raised 13 real estate funds and committed to over 155 transactions totalling more than €12.9 billion across 21 European countries.
The Travers Smith team was led by Head of Finance Danny Peel and Partner Katie McMenamin, supported by Associate Alastair Lowson.
James Hamelin, Director at RBSI, commented "Europa Capital has been a valued client of RBSI for over 15 years now and it has been fantastic working on this transaction and looking at how we can align the financing with Europa Capital's ESG strategy, demonstrating the Bank’s commitment to assisting our clients in the transition to a more sustainable environment."
Danny Peel added "Sustainability-linked financing packages have grown rapidly in popularity but remain relatively new in the real estate subscription facility sector and we are very pleased to have supported RBSI and Europa Capital on this latest transaction. The design of suitable ESG KPIs is bespoke to every transaction and the borrower's priorities. This loan will provide Europa Fund VI with additional incentives, whilst complementing its existing sustainability targets."
To find out more about the use of sustainability-linked incentives in the private markets, please see our cross-practice briefing note here, featuring input from Finance Partner Katie McMenamin.
The Travers Smith fund finance team has unparalleled experience dating back over 25 years in the European fund finance market and advises market participants both providing and seeking finance on the full spectrum of products including subscription line facilities, NAV and hybrid facilities, GP support/co-invest facilities, and preferred equity financing.