Accolade Investment Group has taken a second issue of senior green bonds to a successful conclusion, and is reporting that the interest shown by investors in bonds with five-year maturity and a fixed interest rate of 6.937% p.a. exceeded initial expectations, leading it to raise the planned issue of CZK 1.251 billion to CZK 1.875 billion.
The bonds were offered by a consortium made up of Ceska Sporitelna, a.s., Ceskoslovenska Obchodni Banka, a.s., Komercni Banka, a.s., and Conseq Investment Management, a.s. The par value of one bond was CZK 3 million CZK. Legal advice was provided for Accolade by the White & Case law firm and for the banks by the A&O Shearman law firm.
“Medium-term green bonds are not only attractive to investors because of their yield, but in terms of their positive impact on the transformation of the economy towards an efficient and sustainable future,” said Accolade CFO Tomas Prochazka. “We are convinced that investments in environmentally-friendly industrial infrastructure with a low carbon footprint, the use of renewable energy sources, and effective water and waste management are all key factors in ensuring the future long-term success of domestic and European industry. I would therefore like to thank investors and our financial institution partners, as well as the tenants who are driving the growth of sustainable industrial projects with their demand.”
The Accolade Group concentrates on investment in the development, long-term ownership, and management of modern industrial parks, and it currently has a network of several dozen BREEAM- or DGNB-certified industrial parks in six European countries.
The funds obtained from the current bond issue will be used to finance or refinance projects that fall within the “Green Buildings” category. According to Accolade, the group “only includes projects that meet the highest environmental standards as far as improving the energy performance of buildings, using renewable resources, or minimizing the environmental impact are concerned.”
In addition, Accolade reports, “when planning the issue, the group worked according to what is known as the ‘Green Finance Framework,’ which, in accordance with EU Taxonomy, determines binding rules for the preparation of green projects. The credibility of the document was further proven in an independent evaluation by Sustainalytics, one of the most respected audit companies in the field of sustainability.”
The bonds, which are quoted on the Regulated Market of the Prague Stock Exchange, were issued by Accolade Finco Czech 2, s.r.o., an entity established for the purpose of issuing bonds and subsequently providing financing to other companies in the group. The company is 100% owned by parent company Accolade Holding a.s., which also provided the financial guarantee for repayment of the bonds.