What happened: Concert Properties and HSBC Bank Canada have converted a $71.5 million construction loan on a Victoria development to a green loan.
Why it matters: It is the first green loan in Canada – a new lending product that helps finance projects with strong environmental benefits.
A Victoria-based development project is the recipient of the first green loan in Canada.
Concert Properties and HSBC Bank Canada announced on Thursday a deal to covert a $71.5 million construction loan into a green loan – a new financial product for projects that bear strong environmental benefits and align with green loan principles developed by the global Loan Market Association.
The loan is for Concert's Tapestry project, a mixed-used 'active living' community with for-sale condos, rental suites, amenity spaces and some retail.
The project is expected to use 33% less energy than a comparable building. Concert is also seeking gold certification for the development under the Canada Green Building Council's Leadership in Energy and Environmental Design (LEED).
“Tapestry at Victoria Harbour demonstrates our commitment to quality, sustainability and creating communities that inspire and enhance the wellness of an active aging resident,” said Concert president and CEO Brian McCauley in a news release.
HSBC Bank Canada says it is the first financial institution to launch green finance products in Canada. Green loans include term loans, commercial mortgages and leasing, and are part of a global pledge by HSBC to dedicate US$100 million in financing and investment to green companies and projects.
Projects eligible for green loans include clean transportation, climate change adaptation, circular economy products and green buildings.
“Our customers are becoming increasingly focussed on ESG issues, and we are committed to offering them products that help them invest in creating a lower carbon economy," said Linda Seymour, head of commercial banking at HSBC Bank Canada, in a news release.
