VR Group issues its first green bond
20. May 2022 Press releases
VR Group will apply for the listing of the bond on the official list of sustainable bonds of Nasdaq Helsinki Ltd. The bond represents VR Group’s first issuance under its newly established Green Finance Framework.
“We are very pleased with the success of VR Group’s first green bond. The bond offering was well oversubscribed which highlights both the strength of our credit profile and as well as the investors’ trust in our ability to promote sustainable transportation and logistics in the Nordics” says Erkka Repo, CFO at VR Group.
The proceeds from the issue will be used in accordance with VR Group’s Green Finance Framework to investments into the clean transportation, renewable energy projects and energy efficiency for buildings owned or operated by VR. The object is to mitigate climate change globally by reducing greenhouse gas emissions, generating of renewable energy as well as energy savings.
“The green bond is issued to support VR Group’s plan to invest around one billion euros in railway stock in Finland during 2022–2026. We will invest for example in new electric locomotives, electric trains and in the maintenance and life-cycle management of the existing fleet”, says CFO Erkka Repo.
Danske Bank A/S acted as the Global Coordinator, and Danske Bank A/S, Nordea Bank Abp, OP Corporate Bank plc and Skandinaviska Enskilda Banken AB (publ) as joint lead managers for the transaction. Nordea Bank Abp acted as the Green Structuring Advisor.
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