Zug Estates issues third green bond

Today, Zug Estates Holding Ltd. placed another green bond worth CHF 100 million. In the run-up to the transaction, the existing Green Bond Framework was expanded to a Green Finance Framework. Based on the new, strict selection criteria, 95% of the portfolio is classified as green properties.

In 2019, Zug Estates was the first Swiss real estate company to issue a green bond. After switching its entire bond portfolio to green bonds in 2022, another green bond was issued today with a payment date of 30 September 2024 and an amount of CHF 100 million. It has a coupon of 1.65% and a term of seven years. The share of unsecured bonds compared to all interest-bearing financing will thus increase to around 45%.

In the run-up to the issuance, the existing Green Bond Framework was expanded into a Green Finance Framework, which will allow Zug Estates not only to issue green bonds in the future, but also to gain access to other forms of green financing instruments.

According to the new, strict selection criteria, buildings and sites are classified as green if their greenhouse gas emissions during operation are less than 1 kg per m² energy reference area (2eq/m² ERA pa) or if they are certified by BREEAM (very good or higher), DGNB/SGNI (gold or higher), the Swiss Sustainable Building Standard SNBS (gold or higher) or Minergie.

Despite these very ambitious guidelines, green buildings and sites account for 95% of Zug Estates’ total portfolio, thanks to the long-term systematic implementation of the company’s environmental sustainability strategy. Of these, the properties on the Suurstoffi site with a market value of CHF 418.4 million as of June 30, 2024 are allocated to the two existing green bonds and the newly launched green bond.

ISS Corporate Solutions, one of the world’s leading ESG research and rating agencies, has provided a Second Party Opinion (SPO) on the Green Finance Framework. In addition, ISS (International Shareholder Services) assigned Zug Estates a “C+” rating on August 23, 2024, which corresponds to “Prime” status.

Today’s placement attracted broad interest from institutional investors, as the funds can be invested directly and in full in properties that meet the strictest sustainability requirements and are already operated on a near zero carbon footprint.₂-free base.

UBS AG and Basler Kantonalbank are acting as joint lead managers in the issuance. Application has been made for trading on SIX Swiss Exchange.

Disclaimer:
This press release and the information contained herein may not be forwarded or sent into the United States of America (USA) or distributed or sent to US persons (including legal entities) or to media with broad distribution in the US. Any violation of these restrictions may result in a violation of US securities laws. This bond will not be offered for public sale outside Switzerland. This press release does not constitute an offer to purchase or subscribe for securities and is not a prospectus for issuance pursuant to Art. 35 FinSA.

About Zug Estates
The Zug Estates Group conceives, develops, sells and manages real estate in the Zug region. The focus is on central locations that are suitable for a wide range of uses and enable sustainable development. The real estate portfolio consists primarily of the two locations in Zug and Risch Rotkreuz. The Group also operates a city resort in Zug with the leading business hotels Park Hotel Zug and City Garden and a wide range of restaurants. The total value of the portfolio amounted to CHF 1.84 billion as of June 30, 2024. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, security number: 14 805 212).