As the first company in the world to do so, Diös is updating its green financing framework to conform to the current EU taxonomy for sustainable activities and the European Green Bond Standard proposed by the European Commission. Real estate assets and initiatives that meet the requirements of the framework will be financed through bonds, commercial paper and green bank loans.
"We have been working in this area and learning about the regulations for quite some time now, and it seemed only natural to update our green financial framework to conform with the new requirements. Being first-movers is a feather in our cap, of course, but the financial framework is more about our own efforts to stay at the forefront of developments and to shoulder responsibility for conducting a sustainable business in the long term," says Johanna Olofsson, Head of Sustainability.
The offering is adapted to the proposed requirements and enables the issuance of European Green Bonds, European Green Commercial Papers and European Green Loans once an external review, conducted by an accredited reviewer as required by the European Green Bond Standard, is available. Our ultimate ambition is that bonds issued within this framework before such an external review is possible are reclassified retroactively.
The criteria determining the financeable assets and initiatives within the framework follow the EU taxonomy in the areas of `Construction and Real Estate Activities', `Energy' and `Transport' as well as the goals for `Climate Mitigation' and `Climate Adaptation'. In addition to these criteria, additional but voluntary, requirements that go further than required by the EU taxonomy have been added to the framework regarding environmental certification, energy performance in relation to current Swedish building regulations (BBR) governing newbuilds and the energy performance of existing buildings.
"We believe that the climate crisis is the most severe threat facing society today and the most urgent of the UN Sustainable Development Goals. The climate crisis is not only about changing weather patterns, but also the financial crises linked to drought-afflicted areas, food production, rising sea levels, mass migration, etc., and the impact it will have on financial and social factors in our local areas, our cities, our country and the whole world. It is crucial that Diö's activities contribute to a more sustainable future," says Rolf Larsson, CFO.
The green financial framework has been reviewed by the independent analysis institute CICERO Shades of Green and received an overall rating of Medium Green. Governance and reporting received the highest rating: Excellent.
Diös has commissioned Handelsbanken to assess the conditions for issuing a green, unsecured bond loan under the new green financial framework. Contingent on the prevailing market conditions, a capital market transaction may follow.
Diös has commissioned Handelsbanken to organise investor presentations on 10 November.
Framework and Second Opinion
The framework in its entirety and the second opinion issued by CICERO Shades of Green are accessible on Diö's website: https://investors.dios.se/English/financing/green-financing/
Handelsbanken has served as a Green Structuring Advisor for Diös in developing the green financial framework.
This information was distributed by Cision http://www.cisionwire.se/