Key Impact Points:

• Peab issues $141 Million in green bonds to fund climate initiatives.
• Over 150 investors participated, showing strong interest.
• Bonds support green buildings, clean transport, and eco-efficient production.

Peab has successfully issued green bonds totaling $141 million, demonstrating robust investor interest with around 150 participants. These funds will bolster Peab’s commitment to achieving its climate goals through investments in green buildings, clean transportation, and eco-efficient production processes.

Peab issued bonds maturing in 3 and 4.5 years. The 3-year bonds raised 900 million SEK with a variable interest rate of 3 months Stibor plus 2.30 percentage points. The 4.5-year bonds raised 600 million SEK at 3 months Stibor plus 2.70 percentage points.

“We’re very pleased over all the interest in our green bonds. We have a clear plan for transitioning our business into becoming climate neutral and this issue is an important part of this work,” stated Niclas Winkvist, CFO of Peab.

The funds will finance green buildings, energy-efficient and circular products, clean transportation, and water management. Peab aims for climate neutrality by 2045, targeting a 60% reduction in CO2 intensity from production and a 50% reduction from input goods and services by 2030.

These bonds are part of Peab’s Swedish MTN program and the updated Green Finance Framework, audited by Sustainalytics for robustness and transparency. The last green bond issuance was in 2021, also for €1.5 billion.

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Settlement dates are June 20 and 24. Concurrently, Peab repurchased bonds worth 150 million SEK (ISIN SE0013104692) maturing on September 6, 2024. The transaction was arranged by Nordea, SEB, and Swedbank.

Peab’s green bonds represent a significant step towards sustainable business practices, reflecting its commitment to environmental responsibility and climate action.