We are pleased to announce our latest collaboration in the UK market with Puma Property Finance (Puma), who just last week announced the launch of its Impact Lending Framework. The Framework has been established to provide direct financial benefits to property developers across the UK who are implementing measures in their vision and designs that deliver meaningful and impactful change. Acting as an independent verification partner, Sintali will support Puma for the validation of the sustainability eligibility criteria for the commercial loans.
Qualification as an Impact Loan will provide direct and tangible financial benefits to borrowers in the form of a fee reduction on final repayment of the loan. Borrowers will receive either 0.5% or 1.0% of the total drawn loan amount as a fee reduction, and loans will qualify under two sets of criteria:
Developments in the build-to-sell, build-to-rent, co-living and retirement living sectors will fall within the scope of the Residential Impact Loan framework. Developments in all other sectors will fall within the Commercial Impact Loan framework.
The Sustainability Criteria have been designed in line with the Loan Market Association Green Loan Principles1, with a distinction applied between Residential Loans and Commercial Loans to reflect the different assessment schemes applying in these sectors.
Loans achieving the minimum criteria above will qualify for a fee reduction equal to 0.5% of the total drawn loan, payable following the full repayment of the loan. For loans meeting the higher level of assessment under NextGeneration Project or EDGE, the fee reduction will increase to 1.0% of the total drawn loan.
Paul Frost, Managing Director of Puma Property Finance, comments: “We are immensely proud to be launching our Impact Lending Framework, which is the culmination of many months of thought and consultation and follows our University College London partnership that we announced last year.
“We take both our environmental and social responsibilities seriously at Puma and believe property lenders are uniquely placed to incentivise the adoption of more sustainable and impactful practices within the built environment. The new Framework has been carefully designed to reward developers who actually deliver, not just aspire to deliver, impactful projects. It utilises independent, industry-accredited criteria with external, third-party verification from global leaders in their field.
“This Framework is our next step towards moving the dial and we sincerely hope it will be the encouragement developers and other lenders need to take that next step too.”
Eleni Polychroniadou, Co-Founder of Sintali, comments:
“EDGE was designed by IFC to transform the global real estate market and make green buildings available to everyone. It is encouraging to see lenders such as Puma Property Finance embracing this mission and supporting the UK market in accelerating the decarbonisation of the built environment. With a focus on quantitative results and a reduction in greenhouse gas emissions, EDGE brings value to businesses and to the environment, and paired with the financial incentive from the Impact Framework, creates a win-win opportunity for all.”
Claire Racine, Director, EMEA Head of ESG Strategy, JLL, comments:
“Puma’s Impact Lending Framework is a welcome means for encouraging UK developers to deliver projects that are good for people and the planet. Based on over 20 years of experience benchmarking sustainability best practice in homebuilding through the NextGeneration Initiative, NextGeneration Project provides a succinct, holistic set of criteria for demonstrating sustainability performance. We very much look forward to working closely with Puma Property Finance and their clients.”
For more information on the Puma Property Finance Impact Lending Framework, read more here.
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