Vasakronan Issues Green Commercial Paper to Finance Green Assets
Sweden In November 2013, Vasakronan issued the world’s first green corporate bond. Since then, bonds totalling SEK 18.5 billion have been issued making Vasakronan the Nordic region’s largest issuer of green corporate bonds. Now the company is issuing the world’s first green commercial paper, with the funds earmarked for green assets.
Since Vasakronan was founded in 2008, the company has focused on delivering a high and stable, long-term return, but never at the cost of humanity or the environment. Diligent and structured work has made it possible to halve energy consumption in the company’s property portfolio, to lower carbon emissions from operations by 97% and to environmentally certify 85% of the property portfolio.
In 2010, Vasakronan became the first company in Sweden to launch green leases, which has now developed into an industry standard. In 2013, the company issued the world’s first green corporate bond and in 2018, the Global Real Estate Sustainability Benchmark (GRESB) ranked Vasakronan first in Europe in the office segment and the ninth most sustainable property company in the world.
Today Vasakronan is taking the next step and is issuing the world’s first green commercial paper.
A prerequisite for issuing green commercial paper is that clear guidelines are in place for what is defined as a green asset. Therefore, Vasakronan has drawn up a new, revised and expanded framework for green financing: Vasakronan — Green Finance Framework. The framework encompasses all debt instruments with funds earmarked for green investments. The framework has been reviewed by the Center for International Climate Research (CICERO) and has received the highest mark, Dark Green.
The new framework offers investors green commercial paper that follows the Green Bond Principles and where the capital is earmarked for green assets.
“It has become apparent that everyone profits from working with sustainability. Our ongoing launch of new green debt instruments means we are offering the capital markets further possibilities to actively pursue a lower environmental impact,” says Thomas Nystedt, Group Treasurer at Vasakronan.
The first three tranches will amount to SEK 610 million and has been issued in partnership with SEB, which has also participated in preparing the green commercial paper concept for financing defined green assets. The commercial paper will be listed on Nasdaq Stockholm’s new green commercial paper list. Investors in the issue include Alcur Investment Management, LKAB, Länsförsäkringar Fondförvaltning AB, Nordea Asset Management, Swedbank Robur Fonder AB och SEB Investment Management.