ARTICLES LABELLED WITH TAG ESG

CTP successfully completed another green bond issuance, structured as a dual tranche. CTP raised a total of €1 billion under its recently increased €8 billion EMTN program. The issue included a €500 million five-year tranche, a €500 million ten-year tranche and a concurrent €150 million capped tender offer on the €650 million senior notes due October 2025. Total demand for the issue was around €3.5 billion and the tender offer well exceeded the targeted amount, evidencing and further supporting the solid standing that CTP holds amongst international bond investors less than one year after first entering the market.

Real estate investors and developers across Europe are increasingly turning towards green bonds to help build portfolios of sustainable assets that accommodate a lower consumption of resources in the long term and have a limited impact on the environment. This trend is also clearly visible in the Central and Eastern European region, where a growing number of high-profile companies are choosing to finance their expansion plans with the help of green bonds.

Heimstaden Bostad has set new sustainability targets and will invest nearly €500 million (SEK 5 billion) to reduce the company’s greenhouse gas emissions by at least 46% by 2030, in line with the Paris Agreement ambition to limit global warming to 1.5°C.

Marius Persenea, Chief Operating Officer of Romanian real estate developer IULIUS talked to Property Forum about financing, sustainable development and future plans for different market segments.

Will Robson, Executive Director and Global Head of Real Estate Solutions Research at MSCI, talked to Property Forum about the assessment of environmental, social and governance (ESG) indicators in commercial real estate and its emerging role in the risk management of organizations.

Radu Boitan, Investment Director at Revetas Capital Advisors talked to Property Forum about the importance of Environmental, Social, and Governance (ESG) initiatives, proactive asset management and investment strategies.

Hannes Wimmer, Executive Director, Loan Syndication at Erste Group Bank AG talked to Property Forum about the segments driving the property investment market and the funding focus of banks on sustainable projects. He reveals that compared to Western Europe, the CEE region is lagging a bit when it comes to financing sustainable projects, but big changes can be expected during the next 6 to 12 months.

Since 2007, when the European Investment Bank (EIB) issued the world's first Climate Action Bond (CAB), green bonds have evolved from a marketing tool into one of the fastest-growing investment vehicles. This trend is also visible in the real estate market and is expected only to strengthen, according to Colliers.

Panellists at our virtual European ESG Forum have pointed out that environmental, social and governance criteria are gaining prominence in property investment. Going forward, as ESG certifications become mainstream, securing funding for green buildings will be streamlined, according to the panellists.

Savills has forecast the key ESG, investment and leasing trends for 2022 in 36 cities around the world as part of its 2021 global Impacts research programme. The international real estate advisor predicts that, globally, tech occupiers are set to dominate leasing activity, offices will be the most popular investment sector, prime real estate yields are set to remain largely static, and Asian cities are seemingly lagging behind others around the world when it comes to prioritising sustainable investment.