Portfolio expanded with third green bond
Zug Estates has issued another Green Bond worth 100 million Swiss francs. The bond is targeted at institutional investors and aims to further promote the sustainable development of real estate in the Zug region.
Zug Estates Holding AG placed its third green bond on August 26 with payment on September 30, the real estate company specializing in the development, marketing and operation of properties in the Zug region announced in a press release. The bond, which is aimed at institutional investors, has a volume of 100 million Swiss francs, a term of seven years and an interest rate of 1.65 percent.
Zug Estates had already issued its first green bond in 2019. In 2022, the real estate company then switched its bond portfolio entirely to green bonds. Green buildings currently account for around 95% of Zug Estates’ total portfolio. Properties are classified as green buildings if they have less than 1 kilogram of greenhouse gas emissions per square meter of energy reference area.
In future, Zug Estates wants to be able to offer other types of green financial instruments in addition to green bonds. To this end, the real estate company has expanded its green bond framework to include a green finance framework. As part of the expansion, Zug Estates has obtained a second opinion from International Shareholder Services (ISS) Corporate Solutions. The agency, which specializes in ESG research and ratings, awarded the real estate company a C rating and thus prime status on August 23.