• £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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