Global law firm Dentons advised CPI Property Group (CPIPG) a leading owner of income-generating European real estate, on its debut sustainability-linked loan through a bilateral facility with MUFG. The five-year senior unsecured loan totals €100 million and will be used for general corporate purposes. In keeping with CPIPG’s commitment to reduce the greenhouse gas emissions of its property portfolio, the margin of the loan will step up or down on an annual basis from 2023 onwards, dependent on the achievement of certain milestones in this regard.

Prague-based partner Jiří Tomola led Dentons’ legal team on the transaction with assistance from associates Ondřej Valeš and Leontýna Bártová, and in cooperation with London-based partner Nick Hayday, senior lawyer David Ferris and associate Zeeshan Hussain. Partner Stéphane Hadet and counsel Christophe Renaudin provided Luxembourg law advice.

Commenting on the transaction, Jiří Tomola said: “CPIPG is a longstanding and highly valued client. We have advised the group on numerous high-value financing, capital markets and real estate transactions in recent years, including its €700 million debut sustainability-linked bond issuance  and the update of its Euro Medium Term Note Programme, under which the sustainability-linked bonds were issued. We are delighted to have had the opportunity to continue supporting CPIPG on another significant transaction that increases the pool of capital available to the group, based on its strong commitment to sustainability standards.”

Martin Matula, General Counsel of CPIPG added: “CPIPG is proud to be a leader in sustainable financing and once again, we have appreciated having Dentons by our side to facilitate an efficient transaction process.”