Through green financing, including green bonds, we leverage our extensive green expertise and portfolio while diversifying our investor base, enabling us to increase our investments in sustainable, profitable commercial developments.
To aid in driving advancements within green and reaching our strategic ambitions, Skanska-developed projects play an important role. Green financing enables us to continue investing in sustainable, profitable project developments at a more rapid pace than we can achieve solely through our own capital.
In 2018, we issued our latest green bonds, totaling SEK 1 billion to finance sustainable commercial development projects in the USA, Sweden and Poland. This transaction generated a substantial attention among investors, attracting bids for more than SEK 3 billion. The bonds are listed on Nasdaq Sustainable Bond Market.
This was the second set of green bonds issued by Skanska, following our first green bond issued in April 2014.
Skanska's Green Bond Framework is endorsed by the Center for International Climate and Environmental Research, a leading independent research center associated with the University of Oslo, Norway. A key aspect of our framework is that the environmental impact reporting is aligned with the United Nations' Sustainable Development Goals.
In 2017, Skanska Financial Services collaborated with four banks to establish a green credit line of about SEK 2 billion. This green revolving credit facility – the first in the corporate sector – is a backup for Skanska's green bonds.
Also, with SEB bank we created the industry's first green construction credit. Furthermore, we have set up green loans to finance some of our commercial development projects.
Increasing green financing
At the end of the first quarter of 2018, Skanska's central debt amounted to SEK 3.6 billion, of which about 70 percent consisted of green financing, including green bonds. Our aim is to have close to 100 percent of our central financing from green and sustainable loans and bonds.
Green integral to our culture
More than 70 percent of the revenue from our Swedish and UK construction operations comes from green projects, as defined by the Skanska Color Palette™. Of our own project development operations, green projects account for more than 90 percent of the project value.
Furthermore, Skanska was charged by Fossil Free Sweden, an initiative of the Swedish government, to create a roadmap for achieving a climate-neutral construction sector in Sweden. This road map – which we believe to be the first of its kind – was endorsed by more than 60 stakeholders and was handed over to the Government in April 2018.