In support of Mattamy’s vision of being an industry-leading sustainable builder, in fall 2024, we renewed our borrowing arrangements with a consortium of banks to create the very first sustainability-linked revolver loan for a homebuilder in North America.

Like many companies in the construction sector, Mattamy employs a revolving loan, a credit facility like a line of credit that allows borrowers to draw down, repay and re-borrow within a set credit limit, to provide cross-border working capital for various needs.

When the time came to renegotiate our existing loan, we amended the agreement to establish a three-year, $2.1 billion sustainability-linked loan. “Sustainability-linked” means that Mattamy is charged a lower interest rate if we meet key performance indicators (KPIs) for GHG emissions and energy-intensity reduction. In recent years, this style of loan has become an increasingly popular way for banks to provide corporate clients with a way to cut borrowing costs, if they can meet measurable targets for defined sustainability objectives, like climate-change reduction.

Our new revolver offers Mattamy a potential five-basis-point reduction in overall interest paid if we achieve a 10% GHG reduction in homes sold in FY2025, as compared to equivalent code-built homes.

This is the same target Mattamy committed to in our FY2024 Sustainability Report and was used for the FY2025 Mattamy Team Incentive Plan. Another KPI targets a 9% reduction in annual energy intensity, as compared to equivalent code-built homes.

Our lenders were excited about Mattamy’s sustainability strategy and noted that our ability to set short-term targets based on Scope 3 emissions material to the construction and delivery of our new homes demonstrated our industry leadership in sustainability and made loan approvals easier in a difficult refinancing environment.