MET Group’s Hungarian Solar Park corporate bond, issued in December 2021, has received a green rating from Sustainalytics. This is the first time in Hungary that a bond has been given a green rating retrospectively.
The issuer, MET Hungary Solar Park Kft. used the proceeds from the bond sale to refinance two existing solar parks (Dunai Solar Park and Kabai Solar Park), as well as to finance the acquisition and the construction of three new solar farms. Construction work for Buzsák, Gerjen and Söjtör solar parks is currently underway and accounts for about 80 per cent of the capital raised through the bond sale. The two existing solar parks generate electricity to supply about 50,000 households a year, while the constructed solar parks will be able to supply an additional 140,000 households.
Projects financed through green bonds have a positive environmental impact and contribute to Hungary’s transition towards a clean energy economy. The Green Bond Framework focused mainly on two of the objectives defined by the UN. Firstly, it provides affordable and clean energy, while also being classified as an urgent measure to combat climate change. In addition, the green framework of the solar parks is aligned with the company’s overall sustainability objectives.
“In addition to professional challenges, MET Group was eager to convey its commitment to the green economy to the market, our consumers, partners, and investors,” stressed Gábor Balázs Lehőcz, Vice Chairman of the MET Green Assets Division.
The total value of the 10-year green bond amounts to 64.8 billion forints. The financial advisors on the transaction were Credit Management Group, which has been involved in various corporate and green bond issues.