Vesteda was established in 1998 as a spin-off of the residential portfolio of the Dutch pension fund ABP and is currently the largest investment fund in residential property in the Netherlands. As of early 2019, Vesteda has a total of EUR 7.3 billion (USD 8.2 billion) invested in mid market residential rental properties in the Netherlands. Their inaugural green bond in May 2019 is the second benchmark size bond under its €2.5 billion EMTN programme and the first EUR green bond by a residential fund.
The proceeds will be used to finance and refinance Vesteda’s investments in Dutch residential properties that have either an EPC Label of “A” or have undergone refurbishments resulting in at least 2 levels of improvement in the EPC label and up to a minimum level of C. This amount of improvement corresponds to a minimum of 34% reduction in CO2 emissions, which meets the threshold requirement of the Criteria.
Vesteda prioritises the environmental performance of its homes. It has set a target for at least 80% of its portfolio to have EPC Label A, B, or C, with the remaining 20% to have EPC Label D before 2021. This is more ambitious than the Dutch Government’s targets for the rental residential properties sector.
|
DATE OF ISSUE |
TYPE OF INSTRUMENT |
SIZE |
TENOR |
COUNTRY OF ISSUE |
CLIMATE BONDS SECTOR CRITERIA |
VERIFIER'S REPORT |
ANNUAL REPORT | FURTHER INFORMATION |
|---|---|---|---|---|---|---|---|---|
| May 2019 | Use of Proceeds | EUR 500m (USD 558m) | 8 years | Netherlands |
Low Carbon Buildings - Low Carbon Buildings - Upgrades |
Sustainalytics pre issue report |