WA3RM publishes Green Bond Framework with a Second Party Opinion provided by DNV

Mars 14, 2024

In 2023, Regenergy Frövi AB (“RFAB”) initiated a bond issue of up to EUR 70 million to finance development of the company’s greenhouse project. Once completed, up to 19,600 tonnes of locally grown tomatoes will be produced annually by reusing waste heat from a nearby paper mill. The tomato production is equal to approximately one in five tomatoes currently consumed in Sweden. In parallel, the development company WA3RM has developed its inaugural Green Bond Framework, reviewed by DNV, a global company in assurance and risk management, which will cover the current bond issue.

Jacques Ejlerskov, RFAB Chairman and CEO of WA3RM, comments:
“The project in Frövi is only the beginning of what we strongly believe will change how future industrial development is designed and financed. We are disrupting the traditional approach with linear concepts, by putting unused resources to the best possible use. Circular concepts, where we share and optimize resources, is the future.”

Tom Olander, Vinga Group founder, comments:
”Vinga congratulates WA3RM on the issuance of its Green Bond Framework, and we are proud to have advised the company throughout this process. With Regenergy Frövi, industrial history is created and we are excited to structure green financing that contributes to realizing the project. This transaction represents a major milestone in our efforts to bring sustainable debt financing to Nordic growth companies.”

The Green Bond Framework (“GBF”) is aligned with the ICMA Green Bond Principles and covers investments in the categories Energy efficiency, Pollution prevention and control, Environmentally sustainable management of living natural resources and land, Climate change adaption, Circular economy adopted products and processes, and Green Buildings. All the aforementioned are a natural part of the business practices carried out by RFAB. Furthermore, the GBF sets the guidelines for Project Evaluation and Selection, Use of Proceeds, Management of proceeds and Reporting principles for issued green bonds.

Regenergy Frövi, the Fund WA3RM Regenergy Developer Fund 1’s (“WRDF1”) first project financed by a green bond, encompasses the largest greenhouse facility in the Nordics. Once completed, up to 19,600 tonnes of locally grown tomatoes will be produced annually in the project. This corresponds to approximately one in five tomatoes currently consumed in Sweden, providing a welcome boost to Swedish self-suffiency.

The development, carried out by the developer company WA3RM AB, is divided into two phases with a size of approximately 10 hectares each. Offtake from the first phase of construction will partly be acquired by retailer ICA, Sweden’s largest supermarket chain, through Svenska Odlarlaget, the Swedish Growers’ Association. Tomatoes grown in Regenergy Frövi are expected to be available in Swedish supermarkets starting in August 2024.

Future WRDF1 projects and assets that are potentially eligible for green bond financing will be evaluated on an ongoing basis. Successfully eligible projects are verified to conform with the ICMA Green Bond Principles. Several of WRDF1’s future project are expected to be eligible according to the GBF.

Vinga Corporate Finance has acted as advisor in the bond issue for Regenergy Frövi and has advised WA3RM on the issuance of its Green Bond Framework.

DNV has provided a Second Party Opinion on the Green Bond Framework.