Green Financing

Sustainability is a key cornerstone for Citycon to create long-term value for its investors and to the communities in which it operates. As a result, in 2019 Citycon launched a Green Financing Framework which integrates the company’s sustainability targets with its financing activities. Under the Green Financing Framework, Citycon can issue Green Bonds, Green Commercial Papers, Green Loans, Green Hybrid Bonds or Green Private Placements. 

In 2020, the company further increased the link between financing and its sustainability targets by signing a Sustainability-linked Revolving Credit Facility. In November 2020 Citycon refinanced its EUR 500 million Sustainability-linked Revolving Credit Facility, linking the margin on the credit facility to achieving three of Citycon’s main environmental targets
  • Decreasing the Greenhouse Gas Intensity of the portfolio in line with the target of being carbon neutral by 2030
  • Decreasing energy consumption per square meter in line with achieving a 10% reduction by 2025 and 
  • Certifying the whole property portfolio according to LEED or BREEAM by year-end 2022.

If Citycon meets all of the sustainability targets, measured annually in progress towards the set targets, there is a sustainability discount applied to the interest margin on the facility. On the contrary, if Citycon were to fail on all targets, the company would be obliged to pay a premium on the facility margin. The sustainability-linked margin thus further incentivizes the company to achieving its long-term sustainability targets. 

Citycon’s Green Financing Framework is based on Citycon’s sustainability strategy that spans until 2030 with an aim of becoming carbon neutral by 2030. The framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds issued under the framework can be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management. As at December 31st , 2021, approximately EUR 3.3 billion of Citycon’s property portfolio was eligible for green (re)financing. The annual Allocation of Proceeds and Impact Report 2021, along with a verification report from an external part is available below.

 

In addition to the annual report, Citycon publishes a quarterly update on the total amount of green assets in each category along with the total amount of outstanding green financial instruments. Quarterly updated figures can be found in the table below.

Approved Eligible Asset Amount Green Financing (KEUR) Q4/2021 Q3/2021 Q2/2021 Q1/2021 Q4/2020 Q3/2020 Q2/2020 Q1/2020
New Construction, investments made 342 708 312 102 287 124 241 951 219 648  181 978 157 017 143 223
Existing Buildings 2 923 158 2 939 503 2 936 334 2 940 964 2 731 859 2 667 066 2 690 780 2 447 628
- of which previously New Construction or Major Renovation - - - - - - - -
Energy efficiency, Energy retrofits 11 100 10 087 10 012 9 927 9 492 8 015 4 279 4 000
Energy efficiency, Activities enabling clean transport 80 112 112 112 112 112 112 112
Renewable Energy 1 365 1 341 1 340 1 364 1 302 1 228 1 249 1 184
Total approved Eligible Green Assets 3 278 411 3 263 145 3 234 923 3 194 318 2 962 414 2 858 399 2 853 437 2 596 147
Outstanding green financing, nominal amount 1 130 090 1 128 701 1 128 650 780 036 426 407 350 000 350 000 350 000
Remaining approved Eligible Green Assets 2 148 322 2 134 444 2 106 273 2 414 282 2 536 007 2 508 399 2 503 437 2 246 147