Green Loans Help SLP Lower Financing Cost

Swedish logistics company SLP has renegotiated approximately SEK 700 million of the existing loan portfolio into what they term green loans.

The financing agreements are based on parts of SLP’s property portfolio being environmentally certified as per Miljöbyggnad silver, Miljöbyggnad iDrift, or having low energy consumption.

Green loans will enable SLP to minimize its financing costs by about 5–10 basis points per year in comparison to existing loans.

The company’s business module is to purchase, develop and run logistics properties with an emphasis on sustainable choices.

In order to achieve this sustainable approach, SLP has set sustainability targets for itself that consist of silver environmental certification for new construction, green electricity in all its properties, and environmental certification of half of its property portfolio by 2025, as per Miljöbyggnad iDrift.

It also includes the installation of solar panels and infrastructure for charging electric vehicles in at least five properties every single year.

“The basis for the renegotiation is that we have taken further steps in our sustainability work by, among other things, certification of parts of our portfolio. This means that about 20 percent of SLP’s loan portfolio is green, which reduces the company’s carbon footprint as well as lowers our financing costs. One of the goals of listing SLP was to be able to lower our financing costs. The fact that we can carry out this successful renegotiation in the current market situation is gratifying for SLP,” says Peter Strand, CEO, SLP.