KSA Group on sustainable financing by a CHF 120 million Green Bond
KSA Group has taken another important step on the way to the new green building “Dreiklang”, KSA’s new ecological construction project.
The KSA Group was able to raise CHF 120 million on the capital market by issuing its first green bond. The offering, which was developed under the leadership of UBS and with the Basellandschaftliche Kantonalbank as co-administrator, is primarily aimed at investors who wish to invest their funds in green projects such as the new “Dreiklang” green hospital.
The sustainable bond has a maturity of 15 years and is therefore due 2037. It is issued with a coupon of 1.65% at a price of 100.199%. The settlement will occur on 23 May 2022.
Sustainability is the focus of the KSA Group, which aims to provide specialised and sustainable medical care. Accordingly, the financing of the new building by means of a green bond is a consistent milestone within the group’s overall green strategy.
“The conditions achieved are advantageous for the KSA. This good result reflects the high demand for sustainable investment in the KSA Group. In addition, an interest rate hedge was concluded two years ago with respect to this financing, which enables us to carry out this financing at significantly lower costs compared to the current interest rate level. The interest costs amount to 0.5%,” says Thomas Fischer, CFO of the KSA Group.
KSA Group is composed of the KSA Aarau Center Hospital, the KSA Zofingen Regional Hospital and the KSA am Bahnhof in Aarau. The group is committed to promoting young talent in medicine and nursing. With more than 5,600 employees from around 80 different nations, it is one of the most important employers in the Canton of Aargau.
Baker McKenzie advises Kantonsspital Aarau (KSA) on all legal aspects regarding its first Green Bond. The team consisted of Matthias Courvoisier (partner, capital markets, pictured left), Yves Mauchle (senior associate, capital Markets, pictured right) and Beau Visser (associate, capital Markets).
