Swedish developer Fabege has signed a green borrowing agreement for SEK 1.6bn (€156 mln) with Northern Europe focused-group Brunswick Real Estate.
Fabege said its goal was to increase its fixed-term maturity in order to reduce overall financial risk. The loan runs for just over nine years.
'We’re happy to have received a further green financing option that also runs for a longer period than most banks can offer,' said Åsa Lind, head of treasury at Fabege.
Fabege’s fixed-term maturity amounts to 5.0 years, with the proportion of green financing currently at 60%.
The company added it was striving for a balance between different forms of financing across both the capital and banking markets, with long-term relationships with major financiers having high priority.
'Within Brunswick’s asset management, we work actively on sustainability and long-term investments. For this reason it’s incredibly exciting to be able to implement this financing with a long loan period and a borrower that is at the forefront of sustainability work,' said Aksel Lundquist, fund manager, Brunswick Real Estate.
