Fabege is signing a new long-term credit facility with the European Investment Bank (EIB) for investments in environmentally certified property projects. The loan facility comprises a ten-year credit in an amount denominated in SEK that corresponds to EUR 100m. The financing will be used for investments in some of Fabege’s major property development projects in Arenastaden.
The EIB is an institution within the EU owned by the member states of the EU. The EIB will provide long-term financing for projects that support long-term sustainable development. To date, the EIB has primarily financed transport and energy efficiency projects, but it is now taking the step into the property sector through the financing of property development projects.
“As the EU bank, the European Investment Bank has made tackling climate change one of its top priorities. We are therefore glad to partner with Fabege to support the construction of near-zero-energy buildings, as this project will contribute to the increased use of renewable energies, reduction of energy consumption and sustainable urban development”, says Jan Vapaavuori, EIB Vice-President responsible for operations in Sweden.
Fabege has worked actively with sustainability for more than a decade and was recently selected as the world’s eighth most sustainable property company according to the Global Real Estate Sustainability Benchmark (GRESB).
“We are gratified to see how high sustainability issues have climbed up the agenda. Our customers are setting tougher requirements, thereby continuously motivating us to take the next step. It feels even more positive now that the capital market is also investing in providing financing for sustainable investments,” says Christian Hermelin, CEO of Fabege.
A number of years ago, Fabege decided to environmentally certify all new builds according to BREEAM-SE and the next decision was taken recently to move forward with the certification of the existing portfolio according to BREEAM In-Use. From an initial focus on increasing energy efficiency and reducing carbon dioxide emissions, work has become more focused on the property’s total environmental impact, social sustainability aspects, active cooperation with tenants in a broad spectrum of sustainability issues and demands on suppliers from a sustainability perspective. With the approved credit from EIB, sustainable financing will now also become an important and positive piece of the development puzzle.
“It has been an inspirational process to work jointly with the EIB to develop new forms of green property financing and we are delighted to be the first property company to employ this type of green financing,” comments Åsa Bergström, Deputy CEO and CFO of Fabege.
Fabege AB (publ)