Berkeley said the Green Bonds would be used in alignment with its Green Bond Framework. The Framework supports the firm’s sustainability commitments, financing project developments and assets to achieve “Our Vision 2030” - Berkeley’s long term strategy launched earlier this year. This compromises ten priorities including customers, quality, climate action and nature.
The proceeds of the Bonds will be used “specifically in connection with the development of green buildings (energy-efficient homes) on [the company’s] complex large-scale regeneration sites, where the Berkeley Group is transforming neglected brownfield land into flourishing, well-connected, nature-rich, low carbon neighbourhoods and communities,” a statement from Berkeley read.
Berkeley’s announcement follows a number of meetings with investors “which generated substantial investor interest”.
Richard Stearn, Berkeley’s chief financial officer, added: "We have been delighted by the strength of institutional demand for our debut issue of green bonds. This demonstrates that investors recognise the resilience of Berkeley's unique long-term operating model and, through our new Green Bond Framework, the value to the wider environment of our regeneration activities.
“It takes many years of patient placemaking to stitch these vast spaces, once cut off from their local communities, back into the local fabric, and bring them to life with the right mix of homes, public amenities, parks and open spaces. This is inherently sustainable and relieves pressure on greenfield land."
Green Bonds are used to finance new and existing projects that offer environmental benefits. Berkeley said that it saw the bonds as an important aspect of its “ongoing financing and capital strategy and will be followed by a restructuring of its existing bank facilities”.
