On September 20, 2021, WING announced that it had issued green bonds with a total face value of HUF 25.3 billion through the Bonds for Growth Scheme of the Central Bank of Hungary.
According to the company, 506 bonds with a fixed 3% annual interest rate and 10-year maturity were subscribed for a total amount of HUF 24.5 billion, which was fully accepted by the issuer. The average yield was 3.43% at the auction.
WING noted that it will use the funds raised solely for environmentally friendly projects and assets. Among others, the company agreed to work towards at least BREEAM “Very good” or LEED “Gold” environmental certification for new properties developed from these funds. In addition, the company will spend part of the funds raised through the green bonds on the renovation of its existing properties, with the aim to decrease their greenhouse gas emission by at least 30%.
“WING has long been committed to environmentally friendly real estate development and property management,” said WING Chairman and CEO Noah Steinberg. “This issue of green bonds was an important milestone for us: environmental considerations have already been a part of our architectural and technical design phases, and now they have been introduced to financial planning as well. It is a key objective of ours to set an example with our activities as a market operator and contribute to a shift towards environmentally friendly property development in Hungary. In addition, buildings with green certification and companies with sustainable goals not only have higher social value but also have higher investment value, which means investing in them has clear financial benefits. Accordingly, the green bonds issued contribute greatly to our future growth goals.”
WING also informed that since its establishment in 1999 it had developed 1.2 million square meters of real estate in Hungary. The company is active in every segment of the real estate market, including the development of offices, industrial and retail properties, hotels, and residential properties.