Unite Group PLC (The) GBP450 million Sustainability-linked RCF (1774L)
September 09 2021 - 2:00AM
UK Regulatory
TIDMUTG
RNS Number : 1774L
Unite Group PLC (The)
09 September 2021
PRESS RELEASE
9 September 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the ' Company ')
GBP450 MILLION SUSTAINABILITY-LINKED REVOLVING CREDIT
FACILITY
Unite Students, the UK's leading owner, manager and developer of
student accommodation, announces that it has agreed and signed a
GBP450 million sustainability-linked unsecured revolving credit
facility ("RCF") from HSBC, NatWest and Royal Bank of Canada. The
facility has an initial term of three and a half years, which may
be extended by a maximum of a further two years at Unite's request,
subject to lender consent.
The RCF incorporates three sustainability-linked performance
targets which align with our sustainability strategy, launched
earlier this year. These include annual targets based on:
-- Supporting the group's transition to net zero carbon by 2030,
through reduction in scope 1 and 2 carbon emissions for operational
buildings;
-- Improvements in the EPC ratings of properties in England and
Wales with a target of all properties reaching at least C rating by
2027; and
-- The value of Unite's contributions to social initiatives
aimed at improving access to post-18 education, enhancing
employment prospects for graduates and benefiting local
communities.
Unite's performance against the sustainability performance
targets will be verified by an independent external reviewer and
published in the Group's annual report. Dependent on performance
against the targets, there will be a 2.5bps premium or reduction to
the base margin. Unite will seek to allocate any margin savings to
social initiatives which benefit young people and the communities
in which we operate.
The RCF is our first sustainability-linked loan and follows the
publication of the Group's sustainable finance framework in April
2021. Future loans by the Group are expected to include similar
sustainability-linked features.
The RCF is fully available for general corporate purposes and is
an amendment and extension of the Group's existing bank debt
facilities, which were due to mature in November 2022. The
refinancing extends the Group's earliest debt maturity to 2025 and
increases its weighted average debt maturity by 0.3 years to 5.0
years.
HSBC UK Bank plc acted as Sustainability Coordinator and
Documentation Coordinator for the RCF.
Joe Lister, Chief Financial Officer of Unite Students, commented
:
"Our first sustainability-linked loan is a significant milestone
for our sustainability strategy. We have clear objectives to become
a net zero carbon business by 2030, while delivering a positive
social impact through our work with our employees, students and
local communities. The performance targets further incentivise the
Group to accelerate decarbonisation and improvements in energy
efficiency and underline our growing commitment to social
initiatives."
ENDS
For further information, please contact:
Unite Students
Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 117 450 6300
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager and developer
of purpose-built student accommodation, serving the country's
world-leading Higher Education sector. We provide homes to 73,000
students across 173 properties in 25 leading University towns and
cities. We currently partner with over 60 Universities across the
UK.
Our people are driven by a common purpose: to provide a 'Home
for Success' for the students who live with us. Unite's
accommodation is safe and secure, high quality and affordable.
Students live predominantly in ensuite study bedrooms, with rents
covering all bills, insurance, 24-hour security and high-speed
Wi-Fi. We also hold a five-star British Safety Council audit
rating.
Founded in 1991 in Bristol, Unite Group is an award-winning Real
Estate Investment Trust (REIT), listed on the London Stock Exchange
and a member of the FTSE 250 Index. Unite is invested in and
operates two specialist funds and joint ventures with institutional
investment partners: the GBP3 billion Unite UK Student
Accommodation Fund (USAF) and the GBP1 billion London Student
Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com
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