Swedish property company Vasakronan issued the world’s first corporate green bond, and is financing investments to develop low-impact, climate-friendly building projects.

In November 2013, Sweden’s largest property company, Vasakronan, issued the world’s first corporate green bond, raising $160 million. Since then the investments have continued to grow and, by the end of 2015, Vasakronan’s total investments approved for financing through green bonds totaled more than $725 million. The investments go towards financing environmentally certified construction, renovations or certification upgrades to existing properties. Valued at $13 billion, Vasakronan’s property portfolio comprises 183 properties with a total area of 2.5 million m².

Vasakronan’s green bond framework ensures that all building projects obtain LEED certification, thus complying with the environmental standards for design, construction, operation and maintenance for green buildings. According to Vasakronan, its buildings have reduced their energy use by 47% since 2008.

Buildings are responsible for 40% of energy use in Sweden, according to Vasakronan. Through the issuance of green corporate bonds, the company provides the capital market with the opportunity to reduce this figure by investing in energy-efficient construction and building retrofits, such as window upgrades, additional insulation, locally sourced building materials and green roofs.