Wallenstam refinances windfarm subsidiary with $48 million in green bonds

Written By: Stratton Report
May 20, 2016


On May 20, Wallenstam announced it will issue green bonds for SEK 400 million ($48 million) to refinance wind turbines in its windpower subsidiary Svensk NaturEnergi.

The green bonds are unsecured and will run for two years with maturity in May 2018. The bonds will have a floating coupon of 3M STIBOR (Stockholm Interbank Offered Rate) + 95 points. The bonds will be listed on Nasdaq Stockholm. Swedbank is the issuing institution. Swedbank’s shadow rating of Wallenstam AB is BBB flat and BBB- on the bond loans.

Wallenstam is a property company that manages, builds and develops properties for sustainable living and enterprise in Gothenburg and Stockholm. The property holding is valued at around SEK 33 billion ($3.6 billion) and the customer base consists of just over 7,500 households and 1,000 enterprises.

Wallenstam has retained DNV GL in order to provide a third party certification of the bonds’ compliance with the green bond principles.

In light of the information DNV GL has received from Wallenstam and the work that DNV GL has carried out, it is DNV GL’s opinion that Wallenstam’s green bonds meet the criteria set out in the green bond framework and may thus be considered “green”, as defined in the green bond framework and in line with the spirit of the principles for green bonds.

Hans Wallenstam, CEO of Wallenstam AB commented:

“We are now issuing additional green bonds, where the proceeds from the bonds will be used to refinance wind turbines in our subsidiary Svensk NaturEnergi, which produces renewable energy.”

Wallenstam has been self-sufficient in renewable energy from its own wind turbines since year-end 2012/2013. The company has approximately 5,200 customers who purchase green electricity.