NuGen Properties

Wates takes out £90m sustainability-linked loan

Wates takes out £90m sustainability-linked loan


Loyds Bank is Wates’ lead lender

Wates’ three-year loan is believed to be the second biggest to date taken out by a UK construction company with sustainability strings attached.

And one of those strings is that it has to do something about its pale male leadership.

Sustainability-linked loans are designed to keep businesses focused on their targets, providing a financial incentives for success. Under the terms, if Wates misses specified environmental and social objectives, the interest rate goes up.

Willmott Dixon took out a £50m sustainability-linked loan in May 2021. In October 2021 converted its £375m revolving credit facility to the largest sustainability linked loan in the UK construction industry to date, extending the maturity to October 2024.

Like Balfour Beatty, Wates’ leading lender is Lloyds Bank. HSBC and AIB also provided equal funding on the Wates deal of £30m each.

The first that Wates must hit is that 35% of its 200 largest suppliers have Science Based Target Initiative (SBTi) approved targets in place by December 2024. This is linked to the company’s Scope 3 emissions. These currently make up around 98% of its greenhouse gas emissions.

Wates’ second KPI is to create nearly £370m of “social value” over the next three years.

Finally, the business must aim for more balanced representation as part of its existing inclusion and diversity strategy by improving the number of women in senior leadership positions. Wates currently has one of the most male – and all white – leadership teams among leading construction contractors. Its group board has 11 people on it – 10 white men (five called Wates) and a white woman (audit committee chair Sue Harris). The executive team is also 90% male and 100% white, with Helen Bunch, managing director of Wates Residential, the only woman at the top table.

Chief financial officer Philip Wainwright said: “We are continually reviewing how we can embed sustainability into what we do and we’re pleased that we have been able to identify and agree on three additional metrics with our lenders that will drive sustainability outcomes and demonstrate our commitment around Scope 3, social value and diversity.

“We already have a close working relationship with Lloyds Banking Group through the Wates Innovation Network and it’s encouraging to not only have the support of three banks, but also to see them being prepared to increase their level of exposure, which is a real vote of confidence in our ability to meet these KPIs.”

Max Jones, relationship director in Lloyds Bank’s construction and infrastructure team, said: “Now’s not the time for firms within the built environment to rest on their laurels when it comes to creating a greener, more welcoming industry. Wates have long been a leader for sustainability in the industry – we’re looking forward to helping them reinforce and build upon that position.”

Got a story? Email [email protected]



Source link


Customer Reviews

Nugen Properties

Customer Reviews

Dan Morten 18/01/22

Google
Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

Google
NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

Bradley Eyles 20/06/23

Google
Nugen were fantastic throughout the works they carried out on my property, Jordan provided constant updates and ensure any questions I had were always answered. All works were completed in a timely fashion, on budget and exceptional customer service. Highly recommend!

Sonny Carter-heyward 29/02/22

Google
Brilliant service, renovated my house to make a dream a reality. Thanks guys

sitemanager 22/01/23

Google
Great firm to communicate with fast and good quality work.