Peab has successfully issued $141 million in green bonds, marking a significant step towards its climate goals. The issuance saw robust investor interest with participation from over 150 investors. The funds will be directed towards green buildings, clean transportation, and eco-efficient production processes.
The bonds, part of Peab’s Swedish MTN program and the updated Green Finance Framework, have been audited by Sustainalytics for their robustness and transparency. The issuance includes 3-year bonds raising 900 million SEK at a variable interest rate of 3 months Stibor plus 2.30 percentage points, and 4.5-year bonds raising 600 million SEK at 3 months Stibor plus 2.70 percentage points. Settlement dates are June 20 and 24. Concurrently, Peab repurchased bonds worth 150 million SEK maturing on September 6, 2024.
“We’re very pleased with the interest in our green bonds. We have a clear plan for transitioning our business to become climate neutral, and this issue is an important part of this work,” stated Niclas Winkvist, CFO of Peab.
Peab aims for climate neutrality by 2045, targeting a 60% reduction in CO2 intensity from production and a 50% reduction from input goods and services by 2030. The funds will finance green buildings, energy-efficient and circular products, clean transportation, and water management.
This issuance follows a previous green bond issuance in 2021 for €1.5 billion, underscoring Peab’s ongoing commitment to environmental responsibility and climate action. The transaction was arranged by Nordea, SEB, and Swedbank.
