Berkeley : Green Bond to finance energy efficient homes on brownfield land

Berkeley is set to raise £400 million through the issue of a Green Bond, with the proceeds earmarked to deliver energy efficient homes on brownfield regeneration sites.

Under the terms of Berkeley's Green Bond Framework the unsecured green bonds will mature in 10 years at a coupon of 2.5% per annum - read the full announcement here.

The bond issue, set to take place on August 11 2021, comes as Berkeley brings forward 29 of the most complex and challenging regeneration sites in the country. These projects include vast neglected spaces, like disused gasworks or industrial estates, which offer little social value to the communities around them.

These sites are being carefully remediated and transformed into unique and welcoming places, with a mix of homes and community amenities.

Richard Stearn, Chief Financial Officer, Berkeley Group, said:

'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 place-making 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.'

Berkeley has consistently led the sustainability agenda within the homebuilding industry and continues to take on commitments and challenges which are well ahead of legislative requirements.

Climate Action

Berkeley was the first homebuilder to launch a climate change policy back in 2007, and reduced the carbon impacts of its direct operations by more than 70% between 2016 and 2019, through investing in more efficient operations and procuring 100% renewable electricity.

Berkeley has now adopted 1.5°C aligned science-based targets for reducing the full scope of greenhouse gas emissions connected to our company. This puts Berkeley on course to be a net zero business by 2040.

This track record and high level of future ambition means that Berkeley is the only UK homebuilder with a place of CDP's A-List for climate action and transparency.

Nature recovery

Berkeley has led the development industry in actively reversing biodiversity loss and helping nature to recover.

In 2016 the company become the first homebuilder to commit to delivering a measurable net biodiversity gain on every new project.

Since then, Berkeley has weaved more ambitious and beautiful natural networks through its neighbourhoods, which give wildlife the conditions to thrive and support community wellbeing.

This approach has now been applied to 42 sites, which together will deliver over 480 acres of new or improved natural habitats, an area bigger than Hyde Park.

Our Vison 2030; Transforming Tomorrow

Earlier this year Berkeley launched, Our Vision 2030; Transforming Tomorrow, a holistic long term strategy, which aims establish a 'world class business , trusted to transform the most challenging sites into exceptional places, and to maximise our positive impact on society, the economy and the natural world.'

Our Vision 2030 sets ten strategic priorities for the coming decade, including the next phase of the company's climate action, nature recovery and community building programmes.