Neobo secures €154m sustainability-linked financing

Swedish real estate company Neobo Fastigheter has secured its first sustainability-linked financing, a SEK 1.8 bn (€154.5 mln) agreement with Swedbank. 

Ylva Sarby Westman

This deal extends an existing loan for three years and ties it to Neobo's broader sustainability objectives, motivating the company to advance its environmental agenda.
The terms of the loan are connected to Neobo's targets of achieving a 20% reduction in property energy consumption and a 50% reduction in Scope 1 and 2 emissions by 2030. To ensure progress towards these long-term goals, annual milestones have been established, and the loan's interest margin will be adjusted based on how well these targets are met.
Ylva Sarby Westman, CEO of Neobo, commented: “We continue to integrate our sustainability ambitions throughout our operations by linking our financing to Neobo's overall sustainability goals. The sustainability link creates transparency and clear incentives and shows that we are serious about the sustainable transition.”
Neobo manages and develops residential properties in municipalities with good demand for rental apartments in the long term.