Berkeley Homes has priced its first green bond with £400m to be issued next week.
The housebuilder will offer the 10-year bonds at a coupon of 2.5% per annum, following an investor roadshow generating substantial interest.
Berkeley aims to channel the proceeds into new development with a specific focus on green, energy-efficient housing at large regenerations.
Richard Stern, chief financial officer at Berkeley Group, said: “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.”
In results for the year ended 30 April, Berkeley revealed it had land holdings to deliver over 63,000 homes, of which over 70% were on some 29 large regenerations. The housebuilder aims to increase housing delivery by 50% by 2024/25, compared to pre-pandemic levels of 3,698 homes in 2018/19.
Berkeley also aims to reduces emissions from its direct operations by 50% by 2030, compared to its 2018/19 baseline, and reduce the carbon intensity of its homes by 40% during the same timeframe.
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