Puma Impact Lending Framework registers £145m loans in its first year
Puma Property Finance has announced that, in its first year, its Impact Lending Framework (“ILF”) registered £145 million of development loans targeting qualification under the scheme.
In 2024, Puma provided seven loans totalling £145 million that are targeting ILF certification. The loans cover a range of sectors including care homes, PBSA and life sciences and are located across the UK from North Yorkshire to Devon. Examples of how some developers are aiming to meet ILF certification include a multitude of enhanced sustainability measures such as integrating energy-efficient systems, on-site renewable energy, improved insulation, water conservation measures, and using low-carbon materials.
Puma’s ILF is an innovative, market-leading offering to incentivise developers to adopt stretching sustainability measures on their projects. Puma is one of very few lenders to offer a real financial incentive to developers to be more sustainability focused.
Developments that qualify under the Impact Lending Framework can benefit from up to a 1% reduction in their cost of finance, far in excess of other green lending offerings in the market, with the benefit paid at the conclusion of the project to ensure the Framework delivers real, tangible impact.
Developments can qualify for an Impact Loan if they meet either the Sustainability Criteria or the Social Impact Criteria. The Sustainability Criteria is designed to drive the adoption of sustainable methods of construction, and thoughtful design to enable efficient long-term building usage. The Social Impact Criteria aims to encourage investment into areas of higher deprivation or to support the provision of increased affordable housing. The £145 million worth of loans are targeting qualification under both the sustainability and the social impact criteria.
In order to ensure objective application of the Framework and verify that an Impact Loan has achieved the necessary criteria, Puma partners with independent third parties JLL and Sintali. JLL is supporting with the Next Generation Project1 initiative, which is used to underpin qualification for residential developments under the ILF, and Sintali is a specialist in EDGE certification2, which is applied to all other asset classes. EDGE is a free-to-access open-source global certification standard developed by the International Finance Corporation, a member of the World Bank.
Sarah Milne, Head of Impact at Puma Property Finance, commented:
"We are delighted with the progress of our Impact Lending Framework in its first year. The £145 million in development loans demonstrates the commitment of developers to embrace both sustainability and social impact measures. By incentivising these forward-thinking initiatives, we are not only fostering innovative construction practices but also contributing to the creation of more inclusive and sustainable communities across the UK."
Delivering meaningful change
Learn more about our Impact Lending Framework that delivers an innovative, market-leading offering to incentivise developers to adopt stretching sustainability measures and genuine socially impactful projects.
