Reginn real estate company (Bloomberg: REGINN IR) concluded a green bond offering on June 30th, raising ISK 5bn (USD 36m/EUR 32m) from institutational investors. Reginn is the first real estate company to issue a green bond in the Icelandic market and the first company listed on the Iceland Nasdaq stock exchange to do so.
The new green bond series, REGINN50 GB, is CPI- linked with a maturity of 30 years and pays a fixed 2.477% real-interest rate. The bonds will be listed on the Nasdaq Iceland Sustainable bond market.
The bond proceeds will be allocated towards financing and refinancing of sustainable investments, environmentally certified real-estate and other projects in accordance with Reginn‘s Green Financing Framework.
As one of Iceland‘s largest real-estate companies, Reginn is aware that managing and developing real estate has a significant effect on the environment. Environmental, social and economic sustainability are therefore key components of Reginn‘s core business strategy and Reginn has set clear company-wide goals for sustainability that are measured and shared with staff, customers and investors.
A key milestone in Reginn‘s sustainability strategy was reached when Smáralind, Iceland‘s largest shopping mall, became the first real-estate in Iceland to receive the internationally accredited BREEAM In-Use certification.
In March this year, Reginn published its Green Financing Framework in accordance with ICMA‘s Green Bond Principles and LMA‘s Green Loan Principles. The framework outlines five key project categories in alignment with the UN Sustainable Development Goals, these being green buildings, renewable energy, energy efficiency, pollution prevention and control, and clean transportation. The framework was evaluated by CICERO, the leading global provider of green bond framework second opinions, and received an overall rating of Medium Green and Reginn‘s governance procedure was found to be Good.
Reginn‘s continuing goal is to be a leader in the sustainability certification of real-estate based on established international environmental standards.
Reginn‘s green financing framework as well as CICERO‘s second opinion can be found on Reginn‘s website for Green Financing: https://www.reginn.is/en/investors/green-financing.
Fossar markets managed the process on behalf of Reginn and provided advisory services on the green financing framework.