National Bank of Canada and Otera Capital have provided Carttera with a green loan for its 560,000-square-foot Portland Commons office project in downtown Toronto.

Montreal-based National Bank served as lead syndicator for the loan, the lender announced. The World Bank defines a green loan as a form of financing that enables borrowers to make a substantial contribution to an environmental objective.

Like a green bond, a green loan raises capital for what the World Bank calls green-eligible projects. However, a green loan is usually smaller than a green bond, which may have higher transaction costs and could be listed on an exchange or privately placed.

National Bank and Otera did not disclose details of the Portland Commons financing.

Portland Commons is located at Front Street West and Portland Street in the King Street West neighbourhood. The development is designed to enhance employee wellness, technology and sustainability, and achieve LEED Zero Carbon, LEED Platinum and WELL Gold certifications.

Toronto-based Carttera expects to complete construction in 2024.