Successful issue of Vesteda’s second green bond
Today Vesteda successfully issued its second green bond. This is the third benchmark size bond under its €2.5 billion EMTN programme and the second green bond by Vesteda. The €500 million bond has a term of 10 years and a coupon of 0.75%. The bond was four times oversubscribed. ABN AMRO acted as the sole Green Bond Structuring Advisor, together with BNP Paribas, JP Morgan, Rabobank and SMBC Nikko as Joint Bookrunners. The bond will be listed on Euronext Amsterdam. Vesteda recently got upgraded to an A-rating. A similar rating is anticipated for the new bond.
Vesteda sees corporate sustainability and social responsibility as vitally important for the long-term value development of its portfolio, the organisation as a whole and the society in which it operates. The focus on sustainability makes Vesteda eligible for financing itself by means of green financings.
Following our inaugural green bond, the green private placement, the financing by the EIB, the sustainability-linked revolving facility agreement, we now successfully issued our second green bond, further aligning our financing structure with our ESG strategy.
Vesteda updated its Green Finance Framework to issue green bonds. This framework is based on the EU Taxonomy. Under this framework Vesteda can also issue other green debt instruments, such as loans, private placements, and Euro Commercial Paper. The proceeds of the green bond will be allocated to homes with a minimum EPC label A, homes which have made an improvement of primary energy demand of at least 30% up to a minimum EPC label of C, and new build homes that have an energy performance coefficient of 0.4 or better. The framework obtained a Second Party Opinion by Sustainalytics.
Vesteda will report on the allocation of the proceeds, on the estimated energy savings and greenhouse gas emission avoidance of this green bond.