Lloyds International Supports Sustainable Development in Jersey Through Green Loan Facility

Lloyds International has reinforced its long-term commitment to Jersey through a £41.25 million participation in a £165 million ‘green use-of-proceeds’ multi-bank finance facility for Jersey Development Company (JDC).

The facility will support JDC’s pipeline of sustainable regeneration and development projects, helping to deliver high-quality residential and commercial spaces while aligning with Jersey’s broader ambitions for sustainable growth, long-term community benefit and reduced carbon emissions.

The transaction demonstrates the role that financial institutions can play in supporting sustainable finance at a local level, with green lending helping to direct capital towards projects with measurable environmental outcomes.

JDC’s Sustainability Strategy

JDC plays a central role in delivering major regeneration projects in Jersey. Its current development pipeline includes both residential and commercial schemes, designed to support the island’s housing, workplace and infrastructure needs while embedding sustainability into design, construction and long-term operation.

The ‘green use-of-proceeds’ facility is intended to support projects aligned with JDC’s sustainability strategy, which focusses on creating quality places where people want to live, work and spend time, while reducing environmental impact and supporting the island’s transition to a lower-carbon future.

As part of their 10-year sustainability strategy, JDC places emphasis on reducing both embodied carbon and operational carbon, as well as minimising energy and water consumption in completed buildings. JDC’s approach also reflects Jersey’s wider policy landscape particularly its focus on sustainable resources, alongside the UN Sustainable Development Goals. The Jersey Performance Framework measures progress towards sustainable wellbeing, with long-term indicators focussed on outcomes for the island and its community. Jersey is also recognised as a jurisdiction that has embedded consideration of sustainable wellbeing into Government decision-making through the Public Finances Law framework.

The Government of Jersey’s Carbon Neutral Roadmap further sets out the Island’s direction of travel, including a people-powered approach to decarbonisation and a long-term ambition to move away from burning fossil fuels, reduce on-island greenhouse gas emissions and support net zero by 2050.

“We look forward to working with the team at Lloyds International in pursuit of executing our exciting 10-year strategy that will support the Government’s strategic priorities and create significant benefits for Jersey and the Island’s community.” Simon Neal, Deputy CEO and Commercial Director, Jersey Development Company

‘Green Use of Proceeds’

The development part of the facility has been structured as a ‘green use-of-proceeds’ loan, meaning the finance is made available for projects that meet defined environmental criteria.

‘Green use-of-proceeds’ lending is supported by the Green Loan Principles, which were developed to promote the development and integrity of the green loan product and to support environmentally sustainable economic activity.

In practice, this means that eligible projects funded by the facility are expected to deliver clear environmental benefits, with transparency and accountability around how proceeds are allocated.
For Lloyds International, the transaction reflects the bank’s commitment to supporting clients and communities through the transition to a more sustainable economy.

“It’s been a pleasure to work with Simon and the team at JDC as they continue to drive major development projects on the island and we were delighted to lead the ESG co-ordination. We look forward to continuing to grow our relationship.” James Hendriksen, Relationship Director, Lloyds International

Current Development Pipeline

On the residential side, the pipeline includes Westward, a 139-apartment residential development, and Aviemore, comprising up to eight three-bedroom family homes. Sustainability measures across the residential pipeline include no fossil fuels – low-carbon all-electric heating, whole-house heat recovery, high-performance glazing, low-energy LED lighting, energy- and water-efficient appliances, cycle storage, EV charging and car club provision.

The developments also aim to reduce demolition waste impact by carefully deconstructing the old buildings and ensuring as much as possible is diverted from landfill and recycled.

On the commercial side, IFC2 is planned as a seven-storey office building of approximately 100,000 sq. ft and is designed to achieve a BREEAM “Outstanding” rating.

IFC2’s sustainability features include a triple-glazed façade, high-efficiency electric heat pumps for heating and cooling, a roof-mounted solar photovoltaic array and water efficiency measures including rainwater harvesting and grey-water recycling. The building is expected to deliver in-use carbon emissions 33% lower than regulatory requirements and save an estimated 2.5 million litres of water per year.

Local Impact in Action

This transaction highlights how Jersey’s finance industry can support sustainable development in the real economy. By participating in a green finance facility for JDC, Lloyds International is helping to fund projects that are expected to combine economic regeneration with lower-carbon design, improved resource efficiency and long-term social value.

It is also an example of how Jersey-based organisations, lenders and public-sector-aligned development bodies can work together to support the island’s climate and sustainability objectives.

As sustainable finance continues to evolve, transactions such as this demonstrate the practical role of green lending: connecting capital with projects that support resilient communities, sustainable infrastructure and the transition to a lower-carbon economy.