Sonae Sierra issues €50M in green bonds

The shopping centre developer and manager Sonae Sierra has issued €50 million in green bonds, becoming the first company in the real estate sector to issue them.

The issue of Sustainability-Linked Bonds, more specifically linked to CO2 emissions and recycling rates at the shopping centres under its management, has enabled Sonae Sierra to refinance part of its debt, according to the company in a note to the Portuguese stock market commission CMVM.
“This operation falls within Sonae Sierra’s sustainability strategy, and is a milestone resulting from the efforts and hard work of our teams. It represents a way of reinforcing our commitment to reaching carbon neutrality by 2040 and our alignment with a circular economy model, and in line with best international practices”, says Luís Mota Duarte, Chief Financial Officer and Executive Director of Investment Management at the Portuguese company which has developed and built major shopping centres all over Europe.
The operation was completed with Caixa Geral de Depósitos with CaixaBI as the organiser and general coordinator.
The green bond issue arises at a time when the company is pursuing a strategy that is more sustainability focused.
Sonae Sierra stresses “for 13 connective years it has been recognised by GRESB Real Estate Assessment as a ‘green star’ which goes to show the company’s reputation as a leader in sustainable management policies which are adapted to meet the needs of investors”.
Furthermore, the company has improved its environmental performance, implementing energy, water, and waste management measures, cutting operational costs by €15 million.
On 2002, Sonae Sierra has reduced its electricity consumption b 66% and increased its waste recycling by 223%. Water consumption has fallen by 32% on 2003, and since 2005 its CO2 emissions have been slashed by 84%.