Vasakronan first in Sweden to issue European Green Bond

Vasakronan has been leading sustainability efforts in the property sector for many years and since 2008, has reduced its energy consumption 70%, from around 220 down to 66 kWh per square metre. Today, some 69% of the portfolio meets the EU Taxonomy requirements.

The company is also a pioneer in sustainable finance, with a long track record of being first. Vasakronan issued the world’s first green corporate bond in 2013 and the world’s first green commercial paper five years later. Now the company is taking the next step, becoming the first company in Sweden to issue a European Green Bond (EuGB) under the European Green Bond Standard.

One requirement for issuing EuGBs is the preparation of pre-issuance disclosures (Factsheet), which clarify the extent to which the assets align with the EU Taxonomy requirements, and how monitoring and reporting will be performed. The Factsheet has been externally reviewed by Moody’s and assigned the highest possible rating, Sustainability Quality Score 1 (Excellent), which confirms a strong contribution to sustainable development and alignment both with EU regulations and with market best practice.

“This type of green bond clearly showcases the strong sustainability performance of our operations and demonstrates that we have good control over energy consumption across our portfolio. Our very high share of assets that meet the EU Taxonomy requirements reduces risk in our borrowing and enables us to reach new investors and broaden our investor base,” says Thomas Nystedt, Group Treasurer of Vasakronan.

The first two bond issues amount to a total of SEK 1.3 billion with a maturity of five years. Investors include, among others, SEB Asset Management, Swedbank Robur, Handelsbanken Fonder, Storebrand and H&M Foundation. SEB has acted as advisor during the process and has provided expertise in documentation and bond structuring.

In accordance with the European Green Bond Standard, post-issuance disclosures will be published by Vasakronan on an annual basis to cover the allocation of the proceeds and the environmental impact of the assets financed.

Investments in existing buildings are of central importance to the climate transition and support Vasakronan’s goal of net zero climate emissions across the value chain by 2030. Financing energy-efficient assets ensures their long-term performance, while concurrently releasing capital for new investments in measures that further reduce energy consumption.

> Click here to read more about Vasakronan’s Green financing