Record demand for green bonds
Another step forward for Accolade–in spring 2024, the group issued its first ever green bonds denominated in Czech crowns. Institutional and retail investors showed record interest in the securities offered by the consortium of banks Česká spořitelna, J&T BANKA, and Komerční banka. Strong demand meant that the original issue of CZK 1.5 billion sold out in a week–after the number was doubled, bonds worth a total of CZK 3 billion were snapped up in just two weeks.
The money from green bond issues must be used by companies to finance environmentally friendly projects. In the issue terms, Accolade committed to financing and refinancing projects in the “Green Buildings” category. In the Czech Republic, these encompass the industrial park projects in Ostrov in the Karlovy Vary region and in Zdice in Central Bohemia, with further investments also planned abroad.
The huge interest in Accolade bonds shows that investors, whose trust is hugely gratifying for us, are well aware of the need to steer the Czech economy towards greater sustainability, efficiency and robotisation and are willing to support this through high-quality financial instruments. –Milan Kratina, CEO of Accolade
Accolade’s portfolio is one of the greenest in Europe–for example, its building in the Cheb South industrial park occupied by AUTODOC (currently part of the Accolade Industrial Fund portfolio) received the highest BREEAM New Construction 2016 rating of Outstanding with a record score of 94.2%. Accolade currently has Outstanding certification for eight projects in the Czech Republic and Poland. One important part of the preparation of our green bonds was the internal Green Finance Framework, which lays down rules that conform to the EU Taxonomy.
„We greatly appreciate the trust shown by the participating consortium of banks, whose experience and reputation were key to the ultimate success of this green bond issue. I would also like to thank our in-house team and other parties involved for their outstanding work on the project as a whole,” says Tomáš Procházka, Accolade CFO
Accolade green bonds
- Total issue volume CZK 3 billion
- Issue date May/June 2024
- Minimum investment CZK 10,000
- Maturity: 5 years
- Interest: 8% p. a.
Green bonds are securities whose proceeds are used exclusively to finance environmentally sustainable projects. These can include investments in renewable energy sources, energy-efficient buildings or infrastructure that shrinks the carbon footprint. The bond issuers (companies, cities, countries) commit to using the funds raised in accordance with international standards. Green bonds thus contribute to the development of a sustainable economy, and the growing demand for them reflects the commitment of investors and businesses to reducing their environmental impact.
The EU Taxonomy is a set of rules that introduces a classification system for sustainable projects in the European Union. The goal is to help investors identify and support projects that contribute to the achievement of the EU’s climate goals.
The Green Finance Framework is an internal Accolade document that clearly sets out the rules the group follows when preparing its projects. It was developed in collaboration with external consultants–lawyers and banks–and its quality has been verified by an independent auditor, Sustainanalytics. We are one of the first on the market to have a code of this sort.
Building certificates such as BREEAM, LEED, DGNB and others have no direct link to the EU Taxonomy. They are independent assessments of the sustainability of projects, with each certificate having its own methodology and assessment criteria. Having said that, meeting some of the criteria defined in these certifications helps to meet some of the criteria set out in the Taxonomy.