Stockholm (NordSIP) – Vasakronan AB, Sweden’s largest property company, has issued the world’s first green commercial paper, marking the first time short-term financing instruments are offered with funds earmarked for green assets.
The first three issues amount to SEK 610 million (€58.9 million) and were issued September 21 in partnership with SEB, which also participated in preparing the paper for financing defined green assets. The commercial paper will be listed on Nasdaq Stockholm’s new green commercial paper list.
Nasdaq Stockholm’s Sustainable Commercial Papers list was launched yesterday (September 25th), alongside the Nasdaq Stockholm Sustainable Products list. “The launch of these two segments further highlights the increased interest in sustainable investment alternatives,” said Ann-Charlotte Eliasson, Head of Fixed Income Listings, Nasdaq Nordic. The market is intended to raise further awareness around these new types of sustainable debt instruments.
Investors in the Vasakronan commercial paper include Alcur Fonder AB, LKAB, Länsförsäkringar Fondförvaltning AB, Nordea Asset Management and Swedbank Robur Fonder AB alongside SEB, Vasakronan said.
“It has become apparent that everyone profits from working with sustainability,” said Thomas Nystedt, Group Treasurer at Vasakronan in the press release accompanying the issue. “Our ongoing launch of new green debt instruments means we are offering capital markets further possibilities to actively pursue a lower environmental impact.”
Nysted is referring to Vasakronan’s launch of green leases in 2010, which have since become an industry standard, and issue of the world’s first green corporate bond in 2013. The Global Real Estate Sustainability Benchmark (GRESB) ranked Vasakronan first in Europe in the office segment and the ninth most sustainability property in the world in 2018.
The issue of the green commercial paper, which follows the Green Bond Principles, was preceded by the Vasakronan: Green Finance Framework, a new, revised and expanded framework for financing which encompasses all debt instruments with funds earmarked for green investments.
That framework has been reviewed by the Center for International Climate Research (CICERO) and received its highest mark (Dark Green).
Vasakronan is owned jointly by Swedish state pension funds AP1, AP2, AP3 and AP4.