UK
Ireland
Scotland
London
Construction News
20/10/2021
Balfour Beatty Reaches Agreement On £375m Revolving Credit Facility
International infrastructure group, Balfour Beatty, has reached agreement for the conversion of its £375 million revolving credit facility (RCF) to the largest sustainability linked loan in the UK construction industry to date, extending the maturity to October 2024.
The agreement further demonstrates the Group's commitment to Sustainability, following the release of its refreshed Sustainability Strategy, Building New Futures, in December 2020.
Under the terms of the loan, the Group is incentivised to deliver annual measurable performance improvement in three key areas: carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score as determined by Sustainalytics, an ESG research, ratings and data provider for institutional investors and companies.
Performance in these three areas will be monitored during the lifetime of the facility and depending on the outcomes achieved, a credit margin reduction or increase will be applicable.
Phil Harrison, Balfour Beatty Chief Financial Officer, said: "Balfour Beatty has long been at the forefront of sustainability in the construction sector, with clear targets and ambitions as set out in the company's Group Sustainability Strategy. We are delighted to further demonstrate our commitment with this new sustainability linked loan.
"We appreciate the support of our international bank group and the confidence this commitment reflects in Balfour Beatty."
Max Jones, Infrastructure and Construction Director, Lloyds Bank, said: "We're proud to have worked with Balfour Beatty's international bank group to fund and co-ordinate the largest sustainability linked loan in the UK construction industry.
"With the sector's drive to becoming more sustainable, critical to the UK's net zero ambition, this is an important development for the industry as a whole. Acting as the sole Sustainability Coordinator and the Facility Agent signals our commitment to the industry and our support for Balfour Beatty to reach its ESG goals."
As at 19 October 2021 the RCF, which can be used for general corporate purposes, was undrawn.
The agreement further demonstrates the Group's commitment to Sustainability, following the release of its refreshed Sustainability Strategy, Building New Futures, in December 2020.
Under the terms of the loan, the Group is incentivised to deliver annual measurable performance improvement in three key areas: carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score as determined by Sustainalytics, an ESG research, ratings and data provider for institutional investors and companies.
-- Advertisement --
Performance in these three areas will be monitored during the lifetime of the facility and depending on the outcomes achieved, a credit margin reduction or increase will be applicable.
Phil Harrison, Balfour Beatty Chief Financial Officer, said: "Balfour Beatty has long been at the forefront of sustainability in the construction sector, with clear targets and ambitions as set out in the company's Group Sustainability Strategy. We are delighted to further demonstrate our commitment with this new sustainability linked loan.
"We appreciate the support of our international bank group and the confidence this commitment reflects in Balfour Beatty."
Max Jones, Infrastructure and Construction Director, Lloyds Bank, said: "We're proud to have worked with Balfour Beatty's international bank group to fund and co-ordinate the largest sustainability linked loan in the UK construction industry.
"With the sector's drive to becoming more sustainable, critical to the UK's net zero ambition, this is an important development for the industry as a whole. Acting as the sole Sustainability Coordinator and the Facility Agent signals our commitment to the industry and our support for Balfour Beatty to reach its ESG goals."
As at 19 October 2021 the RCF, which can be used for general corporate purposes, was undrawn.
Latest Construction News
29/01/2025
Caddick Construction has been awarded a £43 million contract to deliver the first phase of Cole Waterhouse's flagship regeneration scheme in Digbeth, Birmingham.
The project, known as Upper Trinity Street, marks a significant step in the area’s transformation.
Spanning 182,986 square feet, the re
29/01/2025
McLaren Construction has been appointed by O&H Properties to deliver the first phase of a £60 million Foster & Partners-designed development at the corner of New Bond Street and Grafton Street in London’s West End.
The seven-storey, 5,400 square metre prime retail and office scheme will feature ret
29/01/2025
GMI Construction Group has been awarded a contract to develop three high-specification warehouse units totalling over 175,000 square feet at Precedent Drive, Milton Keynes.
The £20 million project, commissioned by DV5 Last Mile Developments (UK) Ltd, a joint venture between Coltham and Delancey Re
29/01/2025
Plans for 106 sustainable new homes in Southville, a neighbourhood in South Bristol, have been approved as the city seeks to increase housing delivery to address growing demand.
Top 10 award-winning housebuilder The Hill Group will create a £60 million development on Raleigh Road, on land that was
29/01/2025
Bouygues UK has reached a major milestone in the fourth phase of the Hallsville Quarter regeneration project in Canning Town, London.
The project, part of the £3.7 billion Canning Town and Custom House Regeneration Programme, recently held a topping out ceremony, marking the completion of the 11-s
29/01/2025
Willmott Dixon Interiors is carrying out a significant upgrade to the roof of the National Maritime Museum in Greenwich, one of London's most iconic cultural landmarks.
As part of the £12 million project, the company is installing over 23,000 square feet of sun-protected glazing above the museum’s
29/01/2025
Equans has been appointed by Babergh and Mid Suffolk District Councils to carry out crucial decarbonisation work across the councils' housing stock, using funding secured through the Social Housing Decarbonisation Fund (SHDF).
The councils used the South East Consortium's Zero Carbon Framework to s
29/01/2025
In the world of construction, the quest for energy efficiency and sustainability is ever-evolving. Among the array of solutions available, EPS (Expanded Polystyrene) insulation stands out as a versatile and effective option for enhancing the thermal performance of buildings, particularly when used f
29/01/2025
BCP Council has completed significant coastal protection works at Hamworthy Park, ensuring its resilience against erosion for the next 20 years.
A 200-metre stretch of sea wall along the eastern promenade has been reinforced using low-carbon concrete, while new steps have been constructed to improv
29/01/2025
Geo-environmental consultancy and remediation contractor, The LK Group, has strengthened its team with a trio of recruits.
The multidisciplinary company's latest raft of hires comprises a new director, associate director and remediation manager.
The geo-environmental specialist, headquartered i
