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Patriam Invest has issued first Swedish bond certified green by the Climate Bonds Initiative

Jun 28, 2021

In late 2020, Swedish property developer Patriam Invest initiated a senior secured corporate bond issue of up to SEK 400 million, in order to finance the company’s real estate development. Following the bond issue, Patriam has developed a green bond framework that successfully obtained Certification under the Climate Bonds Standard as of June 15. The bond, structured by JOOL Corporate Finance, constitutes the first Swedish bond issue to be Certified green under the Climate Bonds Standard.

The framework enables the company to issue green bonds earmarked for sustainable property development, both within the current as well as future bond issues. As part of the Certification, Patriam’s existing Torsvik project in Stockholm and the bond financing for the project has been retroactively Certified as “green”.

Future Patriam projects and assets that are potentially eligible for green bond financing will be evaluated on an ongoing basis. Successfully Certified projects are verified to conform with the Climate Bonds Standard eligibility criteria for buildings, be aligned with the Paris Agreement’s 2°C limit and qualify within the 15th percentile in terms of energy efficiency. Real estate projects eligible for green Certification may include both new “greenfield” developments as well as refurbishments or conversion projects.

Ludvig Fredriksson, Patriam CFO, comments:

“The certification of the bond and development of our green bond framework is another crucial step in our increased focus on sustainability. While we are a small developer, we are actively trying to contribute to a positive development in all areas of property development, including financing.”

Tom Olander, JOOL Group CEO, comments:

“We congratulate Patriam on the successful certification of the company’s green bond framework. As a CBI partner since 2018, this certification also represents a milestone in our efforts to bring sustainable debt financing to Nordic SMEs, an issuer segment that has previously lacked sufficient access to sustainable financing alternatives.”

Sean Kidney, CEO, Climate Bonds Initiative, comments:

“We congratulate Patriam on adopting market best practice and successfully gaining Certification under the Climate Bonds Standard. Patriam is tapping into the huge potential for expansion in green issuance in the buildings sector in Europe. Becoming the first Certified issuer from Sweden certainly marks a milestone for sustainable finance in the Nordics and paves the course for others to follow.”