(Bloomberg) -- Canadian Imperial Bank of Commerce led a syndicate of lenders providing a C$780 million ($642 million) green loan that will finance the second phase of construction of the CIBC Square office complex in Toronto.

The transaction is the largest-ever green real estate construction loan in Canada, according to a joint statement from CIBC, which served as administrative agent and green structuring agent, and developers Ivanhoe Cambridge and Hines. Desjardins Capital Markets and HSBC Bank Canada served as co-lead arrangers.

CIBC Square is set to be first office complex in Toronto to reduce water consumption by capturing, filtering, and sanitizing groundwater for use in on-site washrooms, according to the statement. National Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Wells Fargo also took part in the five-year deal, which is aligned with the Green Loan Principles, market guidelines developed to promote the development of the green loan market.

(Adds duration of the loan in third paragraph)

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