Swedish logistics company SLP has entered into its initial sustainability-linked financing agreements with two of its current banking partners, Nordea and Swedbank.
These agreements encompass a total sustainability-linked loan facility of SEK 2.9 bn (€254 mln), of which approximately SEK 900 mln (€78.9 mln) is currently not classified as sustainable financing. The loans, maturing in 2026 and 2027, respectively, incorporate annual performance targets.
Under the terms of these agreements, SLP will benefit from a margin adjustment contingent upon its progress in achieving the established goals. These goals are directly aligned with SLP's environmental initiatives, encompassing the certification of properties, the enhancement of property energy classes, and the consequent reduction of the properties' carbon footprint.
Matilda Olsson, CFO at SLP, said: ‘It is pleasing that, in collaboration with both Nordea and Swedbank, we entered into sustainability-linked loans where we have a connection between the financing and our operational sustainability goals. Our ambition is to continuously expand our sustainability-linked financing over time. The agreements are a first step in that work and we are happy to have the agreements in place.’
Johan Nydahl, senior relationship manager at Nordea, added: ‘At Nordea we are happy to be a financial partner to SLP and support their work in being at the forefront of sustainability work, which has been clearly linked to financing operations. This leads to a more sustainable operation for SLP and their tenants and also means that we are taking concrete steps towards a more sustainable society.’
SLP has successfully achieved its target of securing sustainable loans from all its banking partners, covering 75% of its loan portfolio, a goal initially planned for the end of 2025. To qualify for these sustainable loans, specific properties must adhere to stringent environmental certification standards or exhibit low energy consumption. In return, SLP receives a margin discount of 5-10 basis points annually. Considering the newly established sustainability-linked loans, approximately 90% of SLP's loan portfolio is now either sustainable or sustainability-linked.
As of 30 September, SLP's interest-bearing debt obligations totaled SEK 5.9 bn (€517 mln). New sustainable financing objectives will be adopted in 2025.
