Värde Partners has issued the first green bond by a residential real estate developer in the Euro market.

The bond has been issued by Vía Célere, a portfolio company of Varde, who are the largest homebuilder in Spain. The 5-year €300 million 5.25% high yield bond issued at par was issued in accordance with the Green Bond Principles and reviewed by Sustainalytics.

Varde says the proceeds will be used to fund cash on balance sheet and re-finance existing indebtedness, each in connection with the construction of energy efficient residential buildings in Vía Célere’s portfolio across Iberia. The developments must meet the green bond’s eligibility framework by achieving an Energy Performance Certificate rating in the top 15% of local housing.