Zug Estates issues Green Bond for the first time
Zug Estates says it has become the first Swiss real estate company to place a green bond on the capital market.
Zug Estates Holding placed the CHF 100 million Green Bond on 4 September. The bond has a term of six years and a coupon of 0.1%. As far as is known, this is the first time that a real estate company from Switzerland has successfully issued a fixed-interest green bond.
According to Zug Estates, the proceeds from the issue will be used to refinance outstanding short-term loans in connection with the construction of three buildings on the Suurstoffi site in Rotkreuz. The buildings are being constructed on site 1, comprise a total of 26,000 sqm of lettable office and commercial space and meet the highest sustainability standards, according to Zug Estates. The wooden high-rise S22 is also one of the three properties.
The green bond also diversifies the financing structure and increases the remaining term of the financial liabilities, according to Zug Estates.
Vontobel and Credit Suisse acted as joint lead managers/joint bookrunners for the issue. Admission to trading on the SIX Swiss Exchange is being applied for and the green bond is scheduled to be paid on 2 October 2019, the statement added. (ah)
