Borenius advised the Y-Foundation on the issue of its EUR 100 million sustainability bond and the tender offer for its existing bond

We advised the Y-Foundation on the issuance of its EUR 100 million senior unsecured sustainability fixed rate bond and the simultaneous voluntary public cash tender offer of its EUR 75 million bond that was issued in 2018. The results of the tender offer and the issue pricing of the new sustainability bond were confirmed on 27 September 2021.

Danske Bank A/S acted as the coordinator and joint lead manager for the issue of the sustainability bond. Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ) acted as the joint lead manager for the issue and as an advisor for the establishment of the Y-Foundation’s Sustainability Bond Framework, which includes an ISS ESG second opinion assessment.

The sustainability bond matures in 2026 and has a coupon of 1.625 per cent.

The Y-Foundation intends to use the proceeds of the new sustainability bond to finance or refinance eligible projects in accordance with its Sustainability Bond Framework. The foundation intends to e.g. refinance its previous bond and acquire real estate.

The Y-Foundation Group is one of the key national developers of the Housing First principle in Finland. In addition to offering affordable housing, the Y-Foundation Group encourages public discussion on themes related to homelessness. The Y-Foundation Group is the fourth largest residential property owner and landlord in Finland as it owns 18,000 apartments and operates in 57 cities and municipalities in Finland. The key task of the Y-Foundation Group is to reduce homelessness and promote social justice by providing affordable rental apartments.