Swedavia issues green bond loan

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Swedavia has become one of the first airport operators in the world to issue a green bond loan to fund projects and investments in climate change adaptation and sustainability.

The investments will include projects that support Swedavia’s long-term strategy and that contribute to the United Nations’ Sustainable Development Goals and the Paris Agreement’s long-term temperature goal. The investments will be made under the Green Bond Framework that Swedavia launched in October 2019, developed in partnership with banks SEB and Swedbank.

“Swedavia’s ambition is to be a world leader in developing airports with the least possible climate impact. We have now secured additional funding for our continued adaptation journey and for our vision of climate-smart airports and the transformation of aviation. The great investor interest in the loan was thus very gratifying,” says Jonas Abrahamsson, Swedavia’s president and CEO.

The framework was subject to an independent external assessment by the Center for International Climate and Environmental Research (CICERO). Its investment categories include: green buildings and infrastructure; energy efficiency; renewable energy; pollution prevention and control; and clean transportation.

In its assessment, CICERO took into consideration the fact that Swedavia’s operations could lead to increased emissions but noted that Swedavia is a role model for airports globally in terms of climate change adaptation.

Swedavia’s goal is to have zero carbon dioxide emissions from its own operations at all 10 of its airports by 2020. This will be achieved in part by investing in renewable fuels and the electrification of ground vehicles and equipment. By 2025, 5% of all fuel used to refuel aircraft at Swedish airports will be fossil-free, according to the operator. All of Swedavia’s airports have been certified at the highest level under Airport Carbon Accreditation’s environmental standards.

The unsecured Skr1bn (US$105m) green bond loan has a maturity of 5.25 years and a fixed interest rate of 0.89%. Swedavia intends to apply to have the green bonds listed on Nasdaq Stockholm’s corporate bond list.

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Tara has worked for UKi Media & Events since 2013, initially as a freelancer. She has been a journalist for over a decade and has worked for a range of publications, including Personnel Today, Management Today and The Grocer.

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