Downing secures £75m HSBC facility to enhance sustainability in development finance

Downing LLP’s Property Finance Team has secured a £75m sustainability-linked loan facility from HSBC to amplify its support for small and medium-sized enterprise (SME) developers across the UK.

This facility aligns with Downing’s sustainability strategy and furthers its commitment to providing sustainability-linked loans.

This new line of funding is designed to reflect the principles set by the Loan Market Association, aiming to foster and acknowledge borrowers’ sustainability achievements.

The facility underscores Downing’s sustainable development finance offerings, which encourage borrowers to meet specific environmental, social, and governance (ESG) milestones.

The effectiveness of these initiatives is measured against Downing’s ESG scorecard. This scorecard evaluates various sustainability criteria, including physical risk, embodied carbon, and operational efficiency, amongst others.

Parik Chandra, partner and head of specialist lending at Downing LLP, said: “This new facility is a testament to the team and track record we have built in the development finance sector.

“We continue to grow and diversify our funding sources and are delighted that this facility with HSBC includes sustainability targets which we believe are of increasing importance to a range of investors.”

Downing LLP’s lending criteria showcase flexibility and responsiveness to market needs, with loan offerings ranging from £1m to £30m to experienced developers, and provisions to exceed this range in exceptional cases.

They provide financing up to 90% of loan-to-cost and 70% of loan-to-gross-development value.