Kungsleden inks loan with focus on diversity and climate

Stockholm-listed property firm Kungsleden has prolonged and expanded a credit facility totalling SEK 2.9 bn (€280 mln) with Handelsbanken, complementing the terms of the loan with a focus on diversity and carbon reduction. 

The credit facility has been linked to sustainability, and for the first time in Sweden, with a diversity goal and a goal to reduce the use of energy and CO2e emissions in the firm's properties by a minimum of 25% by 2025 compared to 2020.

The credit facility has been fully secured with mortgage and has a duration of four years. In conjunction with the refinancing, the facility is to be increased by SEK 300 mln to a total of SEK 2.9 bn.

Kungsleden’s deputy CEO and CFO Ylva Sarby Westman said: 'We believe in an inclusive society, and we actively strive to increase the diversity at Kungsleden to reflect society at large, which we are convinced will contribute to our long-term business goals.

'The climate is the greatest challenge of our time, and we focus on reaching our ambitious climate goals. By linking our terms of the credit facility to these goals, we have further incentive to continue this important work.'

The credit facility is a key part of Kungsleden’s liquidity coverage and is primarily aimed to serve as a back-up for issues of commercial papers and loan maturities in the bond market.

Kungsleden has a target of being climate-positive across the value chain by 2035 and its long-term goal is in line with a maximum of 1.5 degrees global warming, according to the Science Based Target Initiative.

The work to achieve the emissions reduction targets includes materials with a low carbon footprint, circularity, energy efficiency, installation of solar panels and geo-energy installations, purchase of fossil-free district heating and the use of climate-friendly refrigerants.

Kungsleden said it had long been an equal opportunities employer at all levels of the organisation and was now focusing intensively on achieving other diversity targets to better reflect society.


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