European logistics specialist CTP has achieved its full, targeted allocation of €4.25 bn in green bonds to support its portfolio of sustainable business parks.
CTP raised €4.25 bn through eight green bond issuances from October 2020 to January 2022, significantly decreasing CTP’s overall financing costs.
The net proceeds from all eight green bond issuances have been used to (re-)finance a select pool of green buildings that meet key sustainability criteria set out in CTP’s green bond framework, with the full amount now allocated to 251 buildings across the portfolio.
Adam Targowski, group head of ESG Management, CTP, said: 'CTP has long been a pioneer in the development of sustainable industrial and logistics space and our long-term goal is to be fully carbon neutral — not just operationally, but through the entire asset lifecycle.
'Green bonds form an important part of our strategy to deliver our ESG ambitions and we are pleased to have fully allocated the €4.25 bn raised to date through this innovative form of green finance.
'We’re delighted that our long-term commitment to continually raising the sustainability standards across our portfolio has been recognized with an industry leading ‘negligible risk’ ESG rating.
'Ultimately, our highly sustainable buildings and commitment to rolling out renewable energy generation on our sites means we can lower the carbon footprint of our CTParks, benefiting the planet and in the process helping our clients to meet their own ESG goals.'
To qualify as green, a building must be certified BREEAM Very Good or above: 65.4% of the green buildings are rated Very Good; 30.0% are Excellent; and 4.6% are Outstanding.
These include CTPark Bucharest West, which at 314ha is the largest industrial park in Central and Eastern Europe and contains Romania’s first BREEAM Outstanding warehouse, with clients including Maersk and Kuhne + Nagel; the 77k sqm CTPark Warsaw South, BREEAM Excellent and let to Fiege among others; and CTPark Budapest West, home to Hungary’s first ever BREEAM Outstanding building and featuring a heat pump system to provide gas-free heating, with clients including TeqBall and Gorenje.
Most of CTP’s green asset pool is located in the Czech Republic (101 green buildings, 52.2% of total proceeds allocated), while Romania has the second-highest concentration of green buildings (98 green buildings, 26.8% of total proceeds allocated).
Other customers benefitting from CTP’s green buildings include Quehenberger, Rhenus, Thermo Fischer Scientific, Inventec, DSV, DHL, and Lenovo.
The Green Bonds allocation was independently verified by ratings agency Sustainalytics. Earlier this year Sustainalytics provided CTP with an ESG Risk rating of 10.0, indicating 'negligible risk', lower than many peers in the pan-European logistics space and ranking the firm at 75th out of 1,048 companies in the real estate sector.
CTP, which has a portfolio of 11.2 million m2 (GLA) across Europe and a growing focus on Western European markets like Germany, Austria and the Netherlands, is targeting rapid growth in the generation of renewable energy across its portfolio and has established its own energy company to oversee an ambitious programme of solar PV installation.
