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CEO Ismael Clemente. Credit: Merlin Properties

Merlin Properties launches Green Financing Program

With this initiative, which targets bonds issued for a total amount exceeding €4.0 billion, Merlin aims to convert all of its outstanding bonds into “green bonds”.

The company makes it possible for all of its assets with sustainable certifications to have a green financing, as part of its recently presented “Pathway to Net Zero Carbon”. To that end, Merlin proposes to commit to retrospectively allocate an amount equivalent to the outstanding principal amount of each series to eligible green assets in accordance with its Green Financing Framework.

With this green financing program, the company aligns its financing strategy with its sustainability objectives, both for the proposed conversion of its existing bonds, as well as for future financings.

The Green Financing Framework has the benefit of a Second Party Opinion and an Independent Auditor’s Report has been prepared, regarding the allocation of the outstanding principal amount of the bonds to a portfolio of eligible green assets.

Pathway to Net Zero Carbon

This recently announced pathway sets out a roadmap to become a net zero emissions company by 2030. This plan comprises three key pillars: reducing the operational carbon by 85%, reducing the embodied carbon footprint in the developments and refurbishments of its buildings, and the use of renewable energy. Furthermore, the unavoidable residual footprint will be mostly offset through own initiatives that will be duly certified.

Merlin currently has a score of 81% for GRESB and 58% for S&P Global, and has been awarded a B rating from the Carbon Disclosure Project (CDP). They have also been included in the Dow Jones Sustainability Europe Index. In terms of certifications, the company has more than 2.8 million sq m with LEED and/or BREEAM and 1.3 million sq m with ISO 14001 and 50001 certifications.