Vasakronan is a major property owner in Sweden, working hard to green their portfolio. This is their second green bond; we covered the first last November.
The bond was issued in two parts, the first SEK350 million at 2.473% interest, the second SEK650 million at a variable (floating note) rate of 67 basis points above 5 year Swedish Treasury bond rates (mid-swaps).
This is a corporate bond with proceeds earmarked for green assets.
By the way, Vasakronan are unrated - hence the lack of headline rating. But, as you can tell from the low interest rate, they are seen as a low-risk investment.
Investors were 100% swedish, nearly all institutional (e.g. pension funds), with most saying they were explicitly interested in the green aspect.
Apparently 50% were investors new to Vasakronan. Yes folks, it's all about investor diversification, and it works.
Interesting gossip has it that Vasakronan could have sold a lot more bonds if they had offered different maturities at the same time. Investors would have taken 3 year, 7 year and other tenors to fill out other parts of their asset allocations; but Vasakronan were focused on 5 year this time. So be it.
This was a trademark Christopher Flensborg deal from SEB.
