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- £110M financing: UPP’s first sustainability-linked revolving credit facility (RCF) ties funding costs to carbon, water, and biodiversity goals.
- Portfolio-wide impact: Targets include carbon reduction, water conservation, and exceeding Biodiversity Net Gain (BNG) across UPP’s 35,000-room student accommodation portfolio.
- Deutsche Bank’s role: Part of its €500B sustainable finance target by 2025, showcasing leadership in integrating nature-focused solutions.
The News:
UPP Group Holdings, a leading provider of UK on-campus student accommodation, has secured its first sustainability-linked £110M corporate revolving credit facility (RCF) with Deutsche Bank. The deal links UPP’s borrowing costs to ambitious environmental targets, reinforcing its commitment to sustainability-led growth.
What’s Included:
The facility sets measurable KPIs for:
- Carbon reduction.
- Water consumption cuts.
- Biodiversity Net Gain across UPP’s portfolio, exceeding regulatory standards.
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“This marks our first sustainability-linked financing, which reinforces our corporate commitment to enhancing the sustainability of our existing portfolio,” said Simon Boorne, UPP Chief Investment Officer.
Deutsche Bank’s Role:
Deutsche Bank continues to expand its sustainable finance initiatives, committing €500B by 2025.
Dmitry Buyanovsky, Vice President, FIC Rates, highlighted: “This transaction showcases Deutsche Bank’s presence in the market and growing footprint working with public institutions.”
Oyumaa de Jong, Vice President, ESG Solutions, added: “UPP is exceeding BNG targets by enhancing biodiversity across their entire portfolio, not just new developments.”
Why It Matters:
This deal demonstrates how sustainability-linked financing can drive measurable environmental improvements across infrastructure assets, aligning financial growth with environmental stewardship.
With this innovative facility, UPP sets a precedent for integrating sustainability into large-scale student accommodation portfolios.
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