Vasakronan Issues Green Commercial Paper to Finance Green Assets

Sweden 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.

2018-09-21

Share via e-mail

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.




Axel Ohlsson
axel@nordicpropertynews.com




Gullringsbo Acquires Grandab's Share in Novi Real Estate

Sweden Sweden Gullringsbo Egendomar extends its ownership in Novi Real Estate by acquiring Grandab's share in the company. After the transaction, Gullringsbo owns 70 percent of the shares. The remaining shares are held by a number of key employees.

Here Are the Threats to the Stockholm Office Market

Sweden Sweden Mikael Söderlundh, Head of Research and Partner at Pangea, tells Nordic Property News about the pressure on the yields and the threats to the Stockholm office market that may have reached its peak.

Skanska Builds Office Building in Helsingborg

Sweden Sweden Skanska has signed an agreement with Wihlborgs Fastigheter to build a new office building, Prisma, at the central station in Helsingborg.

Diös Acquires in Östersund

Sweden Sweden Diös has purchased a property on Prästgatan in central Östersund. The property will be a complement to Diös’ current portfolio in the neighbourhood and part of the company’s continued strategy of urban development.

Wallenstam Makes Gothenburg Acquisition

Sweden Sweden Wallenstam acquires a property in Gothenburg CBD from SEB Trygg Liv for MSEK 375 (EUR 36M).

Skanska Sells in Boston

Sweden Sweden Skanska, in partnership with PGIM Real Estate, has divested its multi-family development The Harlo in Boston, USA to Invesco Real Estate, a global real estate investment manager. Skanska’s equity ownership is 50 percent. Skanska USA Commercial Development will record the company’s portion of the divestment, USD 75M in the first quarter of 2019. The transfer of the property was completed February 2019.

Eastnine to Acquire S7 in Vilnius

Sweden Sweden Listed Swedish Eastnine has signed an agreement to acquire Building I, II and III of S7, a newly built and sustainable A-class office park in Vilnius’ central business district for EUR 128.3M.

The Investment Manager Focuses on the Four Major Cities

Sweden Sweden Sweden's largest real estate company Vasakronan has made its last deal outside the big cities. This is why Wihlborgs was the natural buyer in the latest deal.

Wihlborgs Makes Major Acquisition in Lund

Sweden Sweden Wihlborgs acquires two office properties in Lund from Vasakronan for SEK 1.26 billion (EUR 120M).

The CEO on the Divestment to the Building Giant

Sweden Sweden Why AM1 Fastigheter and Kian Properties sells to Skanska at this stage. "Strategic decision."