Swedish real estate giant Vasakronan has issued a second green bond, raising SEK1 billion ($157 million), it has been reported.
The bond, which is the second from Vasakronan in the past six months, was bought almost exclusively by Swedish investors, according to Sean Kidney, CEO of NGO the Climate Bonds Initiative.
It is thought that the proceeds will – like those from its previous bond – be used to help the firm green its portfolio through projects "aimed at achieving both lower energy use and lower climate impact".
Half of the buyers are thought to be new investors in Vasakronan, helping the firm diversify its pool of lenders.
Most buyers are institutional investors with an interest in green finance, added Kidney.
The current bond was issued in two parts: the first SEK350 million had a coupon of 2.473%, and the second SEK650 million at a variable rate of 67 basis points above five-year Swedish Treasury bond rates.
In November, Vasakronan closed the world's first corporate labeled green bond, raising SEK1.3 billion.
Both green bonds were handled by Swedish financial group SEB.
Vasakronan, co-owned by the four leading pension funds in Sweden, has 192 properties across the country valued at SEK87 billion. The company has a strong focus on sustainability and green buildings, and is carbon neutral. Vasakronan is unrated.
Sophie Robinson-Tillett
