Another world first, Vasakronan issues green commercial paper to finance green assets
(News Cision, 21 Sep 2018) 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. Today, 21 September, 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.