Investors Flock to Kojamo’s Inaugural Green Bond

    Stockholm (NordSIP) – On May 19th, Kojamo Plc, the largest private residential real estate company in Finland, issued its €350 million 8-year inaugural green bond to finance or refinance investments that promote energy efficiency of buildings in accordance with the company’s Green Finance Framework. The transaction benefited from substantial investor demand.

    “I’m pleased that Kojamo’s first green bond has attracted strong investor interest. The issuance provides strong evidence of the connection between our sustainability work and Kojamo’s business and its financing,” says Kojamo’s CFO, Erik Hjelt.

    The bond was issued under Kojamo’s EMTN programme and pays a 0.875% annual coupon and was priced at 96.2 basis points (bps) over mid/swaps, down from initial price thoughts (IPTs) of MS+125bps, thanks to €1.4 billion in demand. The notes had an average 1% yield at issuance. The programme has been rated Baa2 by Moody’s, reflecting Kojamo’s long term issuer rating of Baa2 with stable outlook.

    Demand was dominantly Nordic (43%), followed by interest from French (16%) and UK/Irish (16%) domiciled investors. German/Austrian and Swiss (11%), Benelux (7%) and southern European investors (7%) purchased the rest of the notes. Sectorally, asset and fund managers purchased most of the securities (59%), followed by pension and insurance companies (15%), central banks and official institutions (14%), banks and private banks (9%), and other miscellaneous organisations (3%).

    Danske Bank, Deutsche Bank, Nordea and Swedbank  acted as joint bookrunners. Kojamo plc will apply for listing of the Notes on the official list of Euronext Dublin and for their admission to trading on the regulated market in question.

    Kojamo’s Green Finance Framework links the company’s sustainability targets and climate actions with investments in sustainable and low-carbon projects focusing on energy efficiency, renewable energy, clean transportation or waste management. The company aims to achieve net-zero emissions by 2030 and its Framework received a “Medium Green” rating from second opinion provider CICERO Shades of Green, which also rated the frameworks governance to be “Excellent”.

    Image by Elena Uusoksa from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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