Commercial, Finance  -  October 26, 2020

Starwood Property Trust issues $300 million green bond

Starwood Property Trust announced Oct. 19 the release of its first sustainability bond to the sum of $300 million.

The real estate finance company intends to allocate an amount equal to the net proceeds of the bond to fund recently completed or future eligible green or social projects that meet specified criteria, including investments in, financings of and/or acquisitions of one or more of the following: renewable energy, green buildings or affordable housing.

The company said in a statement that it plans on using the net proceeds to fund the redemption of the remaining $250 million outstanding principal amount of its 3.625% Senior Notes due 2021 after the full allocation of an amount equal to the net proceeds for eligible green projects.

The eligibility criteria outlined for potential recipients align with the four core pillars of the Green Bond Principles, 2018, Social Bond Principles, 2020 and Sustainability Bond Guidelines, 2018.