Fabege is establishing a new framework for green financing. The purpose of the framework is to create a standard for green financing that can be used in a number of Fabege’s different sources of funding. CICERO has issued a second opinion on the green framework.
Fabege’s objective is for 100 percent of its financing to be classified as green. The new green framework for financing can therefore be linked to a number of different funding sources, offering Fabege an expanded platform for green financing.
Fabege’s MTN programme is being linked to the new framework. In addition, an updated prospectus is being published, which is approved by Finansinspektionen, the Swedish financial supervisory authority. The scope of the MTN programme is being increased from SEK 8 billion to SEK 10 billion. The programme will continue to exclusively issue green bonds.
Fabege also connects its commercial paper programme to the green framework. This means Fabege will continue to issue green commercial paper in which borrowed funds are used to finance approved assets in accordance with the framework. Fabege’s back-up facility for the commercial paper programme will also be linked to the framework and therefore become a green facility. The ambition is to link more funding sources to the green financing framework in the future.
The framework has been designed to give Fabege broad opportunities for green financing and is based on a third party certified properties and ambitious energy consumption targets. The framework is based on the green bond principles, with a link to Fabege’s aim to contribute to the 2030 Agenda goals. CICERO has issued a second opinion with ratings of ‘medium green’ for the green terms and conditions and ‘excellent’ for governance.
The framework establishes the terms and conditions for the management of funds and for follow-up and reporting to lenders and investors. Reporting will take place quarterly, as well as in a more expanded form annually.
All information about Fabege’s focus on green financing with links to prospectuses, frameworks, second opinions, reporting etc. is available at www.fabege.se/gronfinansiering.
Handelsbanken and Advokatfirman Westermark Anjou has acted advisor in preparing the documentation regarding prospectus, commercial paper program, back-up facility and green framework for financing.
- “We have ambitious aims for our sustainability work, much of which is an integral part of our operating activities. It’s very pleasing to now be establishing a new framework that contributes to expanding our green financing platform, enabling us and finance providers to contribute to more sustainable development,” said Åsa Lind, Head of Treasury at Fabege.
Fabege AB (publ)
