Heimstaden Bostad establishes sustainability-linked financing framework

Heimstaden Bostad establishes sustainability-linked financing framework
Adam Lindh, Head of Treasury at Heimstaden

European residential real estate company Heimstaden Bostad has established a combined green and sustainability-linked financing framework to enable the issuance of green and sustainability-linked financing instruments.

The green financing element of the framework identifies three eligible categories for future investments: development or acquisition of buildings, major renovations of existing buildings, and energy efficiency measures.

The sustainability-linked financing element specifies a Sustainability Performance Target for the Key Performance Indicator relating to mentioned greenhouse gas emission target. 

“The gravity of the climate crisis calls for real action from the global community. We are committed to take a leading role in the efforts of transitioning the property sector to a low-carbon and environmentally sustainable society. The combined green and sustainability-linked framework enables us to allow investors to be part of this transition,” says Adam Lindh, Head of Treasury at Heimstaden.

The globally leading ESG rating agency Sustainalytics, concluded in a Second Party Opinion that Heimstaden Bostad’s Green and Sustainability-Linked Financing Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2021, Green Loan Principles 2021, Sustainability-Linked Bond Principles 2020, and Sustainability-Linked Loan Principles 2022.

Sustainalytics also believes that the activities and projects to be financed under the Framework will be carried out in alignment with the EU Taxonomy’s Minimum Safeguards. 

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