Interest rates on the loan go up or down depending on the contractor’s green performance based on the Loan Market Association’s ‘Sustainability-Linked Loan Principles’.
HSBC said: “The facility will have a margin linked to Willmott Dixon’s sustainability targets and provide liquidity for general corporate purposes.”
Graham Dundas, Chief Financial Officer at Willmott Dixon said: “We are delighted to have secured this facility, which further underlines our very strong financial position at a time when company balance sheets have been under pressure as a result of the challenges created by Covid-19.
“What is even more pleasing is that it is linked with our ambitious zero carbon targets. It’s important a company’s positive contribution to our planet’s long-term wellbeing is reflected in the support it receives from its banking partners.
“I’m sure the long-term impact of big business on tackling climate change is going to receive even greater scrutiny going forward from the banking sector when determining access to products such as revolving credit facilities.”
Willmott Dixon launched its ‘Now or Never’ sustainable development strategy last year with the aim that all new build and refurbishment projects delivered from 2030 will be net zero carbon in operation.
Akhil Shah, Relationship Director for HSBC UK, said: “Willmott Dixon has long played a leading role in improving sustainability in construction.
“This first-of-its-kind funding for the sector demonstrates the business’s commitment to incorporating ambitious sustainability targets across all aspects of its operations.”