EUROFIMA issues SEK 1.5 billion  8-year Green Bond
NEWS 26.11.2020

EUROFIMA issues SEK 1.5 billion 8-year Green Bond

Final Terms of the transaction

Issuer

EUROFIMA

Ratings

Aa2/AA (Moody’s/S&P) (all stable)

Principal Amount

SEK 1,500,000,000

 

Pricing Date

20th November 2020

Settlement Date

27th November 2020

Maturity Date

27th November 2028

Re-Offer Price/Yield

100.00% / 0.490%

Coupon

0.490% annually, 30/360, unadjusted

Spread

MS +25bps

Documentation

Issuer’s EMTN-programme

Listing

Luxembourg Stock Exchange

ISIN

XS2264546917

Use of Proceeds

Green Bond

Lead Manager

Danske Bank

 

About the transaction

On November 20th, EUROFIMA raised SEK 1.5 billion in an eight-year Green Bond. The SEK denominated Green Bond, which pays a coupon of 0.490%, attracted interest from some of the main sustainable investors in the Swedish krona market, Skandia and Swedbank Robur. The transaction marks EUROFIMAs first green bond in the Swedish market and its largest SEK transaction to date.

Proceeds raised through Green Bond issuances will be exclusively used to finance investments in Eligible Green Assets (electric locomotives, electric multiple units, coaches) used by EUROFIMA’s shareholder railways and/or their affiliates for passenger transport only.

At any time an amount equal to the net proceeds of the issue of the Green Bonds will be separately earmarked within EUROFIMA's Treasury system and will be part of the regular Asset-Liability (ALM) and Treasury activities. Green Bond proceeds will be mapped to and reported along the categories of investments as per Use of Proceeds. For each Green Bond issue, the funds will be specially earmarked within the company’s internal accounting systems to ensure that such funds are only disbursed to identified projects qualifying as Eligible Green Assets as defined under the Use of Proceeds.

Link to EUROFIMAs green bond programme:

https://www.eurofima.org/sites/default/assets/File/investor-relations/green-bonds/EUROFIMA%20-%20Green%20Bond%20Framework_final.pdf

 

Transaction comments

“After a record year in new loans granted to our member railways, we still see continued demand for loans in non-benchmark tenors. Our inaugural Swedish Krona Green Bond allows us to support our clients in renewing and modernizing their rolling stock and to further promote sustainable transport across Europe, while at the same time providing additional ESG compliant investment opportunities to the Swedish investor community. In addition, our first Swedish Krona transaction since more than ten years helps us in diversifying our funding base.” says Stefan Hoeferlin, Senior Funding Manager at EUROFIMA

“This transaction is predominantly a testament of two things. Firstly, that EUROFIMA attracts interest from such knowledgeable green bond investors is a testament of their support to the sustainable development of public passenger rail transportation in Europe and to a strong sustainability profile. Secondly, that a reputational entity as EUROFIMA uses the Swedish market place for its valued green bond issuance is testament to the fact that the Swedish investors are considered among the most valued and knowledgeable in the market of green bonds. We are extremely pleased that we could match these two sides with such deep sustainability knowledge, making the inaugural EUROFIMA Swedish Krona green bond possible.” says Lars Mac Key, Head of DCM Sustainable Bonds at Danske Bank

“Skandia is searching high and low for profitable and climate friendly investments, benefiting both our savers and the planet. Railway is crucial in a climate-smart transport system, and therefore we are very pleased to present this investment.” says Alexander Onica, Head of Fixed income and FX at Skandia

“Public and goods transport are important to modernize as a central step to achieve the climate goals set in the Paris Agreement. It is also aligned with The European Green Deal’s growth strategy, which aims to make Europe the first climate neutral continent by 2050. To invest in modern railways is a positive and necessary step in a more sustainable direction, since rails is one of the best transport alternatives for people and goods when it comes to reducing Co2 emissions. Rails also helps reducing traffic congestions and road accidents. Swedbank Robur are happy to be part of this transaction. This investment goes very well with our own ambitious climate strategy, where our goals are that all of our managed fund capital should be aligned with the Paris Agreement in 2025, and Co2 neutral in 2040” says Thomas Bäck Senior Portfolio Manager at Swedbank Robur

 

About EUROFIMA

EUROFIMA is a supranational organization whose public mission is to support the development of rail transportation in Europe and to support the railways operators, which are also its shareholders, in renewing and modernizing their rolling stock.

EUROFIMA was established on November 20, 1956, based on an international treaty (the “Convention”) between sovereign States. It is governed by the Convention signed by its Member States, its articles of association (“Statutes”) and in a subsidiary manner by the law of the country in which it is located. Originally founded for a period of 50 years, all Member States approved the extension of this period for additional 50 years until 2056, at the extraordinary General Assembly on February 1, 1984. 

For further details, please contact the EUROFIMA funding team:

Stefan Hoeferlin, Senior Funding Manager, stefan.hoeferlin@eurofima.org

Aurelia Gerber, Capital Markets Manager & Sustainability, aurelia.gerber@eurofima.org