Castellum Introduces Revised Framework for Green MTNs

Published on: 06 September 2022
by KnowESG
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Castellum issued its first green corporate medium-term note (MTN) in 2016. The demand for green MTN has increased in recent years. Castellum is now launching an updated framework with sustainability requirements that are even more stringent.

Castellum believes that economic growth requires sustainability. Promoting the development of a sustainable society is a natural element of the company's activity as a key long-term player in the industry.

Green bond financing as part of the company's MTN and euro MTN (EMTN) programmes allows investors to contribute funds to some of its most sustainable projects and properties. 

The general terms and conditions for green MTNs issued are the same as those for other bonds issued under Castellum's MTN and EMTN programmes, with the crucial difference that proceeds from green MTNs can only be allocated to projects and assets that qualify under Castellum's green framework.

Jens Andersson, Head of Treasury of Castellum AB, said: 

"We are seeing a clear demand for green MTNs, and this will give us lower financing costs. With our stringent sustainability requirements, our bond investors can rest assured that the projects selected truly support the transition towards a more sustainable society."

The new framework has been aligned with the ICMA Green Bond Principles for 2021 and the EU Taxonomy. 

Castellum collaborated with Handelsbanken to create a framework for green MTNs. Castellum also hired the research firm Cicero Shades of Green to conduct an impartial review of Castellum's sustainability initiatives and the level of ambition of the framework.

Overall, Castellum's governance of its sustainability projects is excellent, and the framework has received Cicero's Medium Green shading.

Source: Castellum

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