International rail transportation development organization EUROFIMA announced that it has issued a SEK 1.5 billion (US$175 million) green bond. The 8 year bond pays a coupon of 0.49%, and represents EUROFIMA’s first green bond aimed at the Swedish market. EUROFIMA stated that the offering attracted interest from some of the main sustainable investors in the Swedish krona market, including Skandia and Swedbank Robur.
The bond was issued under EUROFIMA’s green bond framework. According to the framework, proceeds raised through Green Bond issuances will be exclusively used to finance or refinance investments purchases, modernisation and refurbishments of Eligible Green Assets used by EUROFIMA’s shareholder railways and/or their affiliates. Eligible assets include electric locomotives, electric multiple units, coaches.
Stefan Hoeferlin, Senior Funding Manager at EUROFIMA, said:
“After a record year in new loans granted to our member railways, we still see continued demand for loans in non-benchmark tenors. Our inaugural Swedish Krona Green Bond allows us to support our clients in renewing and modernizing their rolling stock and to further promote sustainable transport across Europe, while at the same time providing additional ESG compliant investment opportunities to the Swedish investor community. In addition, our first Swedish Krona transaction since more than ten years helps us in diversifying our funding base.”
Swedbank Robur announced that it is one of the anchor investors in the deal, investing SEK 500 million. Thomas Bäck, Portfolio manager at Swedbank Robur, said:
“We are very pleased to invest in EUROFIMA’s first green bond aimed at the Swedish market, with a focus on modernizing the railway sector in Europe. The investment goes hand in hand with Swedbank Robur’s own climate strategy, where we have established our ambition to work actively to make our managed fund capital in line with the Paris Agreement by 2025 and carbon neutral by 2040.”