All agreed loans

Sweden. Lidl Sverige KB

Date of agreement: 18 Feb 2020
Country: Sweden
Customer: Lidl Sverige KB
Amount in SEK: SEK 500 million
Amount in EUR: EUR 47.20 million
Maturity: 10 years
NACE sector / loan type: Construction
Business area: Industries and services

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%
NEB category: Green buildings
Amount disbursed: EUR 47.1 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

The loan has been provided to finance the construction of Lidl Sverige’s new headquarters and an adjacent store in Stockholm, a new logistics centre in Örebro and the first Zero-CO2 Lidl store in Visby. The buildings will all be certified Excellent under the BREEAM rating system for green buildings.

Lidl Sverige’s new headquarters will be located in Barkarby in the Stockholm region. Adjacent to the new headquarters, a new Lidl store is under construction. The two buildings are scheduled to be completed during autumn 2020.

The loan also finances in part Lidl’s new greenfield warehouse and logistics centre in Örebro, which was completed in October 2019.

Sweden’s first Zero-Co2 (NollCO2) store is constructed in Visby, Gotland. This is a pilot project for Lidl and for the Sweden Green Building Council (SGBC). In addition to a BREEAM Excellent certification, the store will receive certification under the Zero-CO2 standard for climate neutral buildings. The aim of such facilities is to achieve net zero CO2 emissions over the course of a building’s life cycle. The Visby store will have energy efficient lighting and heating, which includes the recycling of waste heat, solar panels on the roof, eco-zones for insects and birds, and recharging stations for electric cars and bikes.

Upon completion, the investments will have combined floor area of 81,852 m2.

Lidl is an international supermarket chain with approximately 10,800 stores in 29 countries. Today, Lidl operates over 190 stores in Sweden and employs approximately 4,200 people. The chain is part of the Germany-based Schwarz Group.

Fulfilment of NIB's mandate

Productivity:

The investments contribute to Lidl’s expansion strategy in Sweden. Food products account for 12% of average Swedish household expenditures. Hence, price effects of intensified competition in the national grocery market are expected to pass directly to households’ disposable income.

The new warehouse in Örebro is contributing to increasing the capacity of Lidl Sverige’s logistics operations by helping to mitigate operational risks and by diversifying storage operations. Before the new warehouse started operating, the company’s other facilities were running at full capacity.

Environment:

All buildings are in the process of being certified as BREEAM Excellent, and are expected to be using 30-60% less energy than is required in Sweden’s national building code. The projects include the installation of solar photovoltaic cells with a combined total energy output of 1,000 Mwh per year. In addition to BREEAM Excellent, the store in Visby is in the process of being certified according to the new Zero-CO2 standard for climate neutral buildings.

Indicators for expected impact of the investment:

Lidl’s market share (%)

Lidl’s average EBITDA margin (%)

Number of Lidl stores by 2023

BREEAM green building certification (level)

Zero-CO2 certification of the store in Visby

Relative energy use for all financed buildings (kWh/m2/year)

On-site renewable energy generation for all financed buildings (MWh/year)

Sustainability summary

No sustainability concerns were identified in connection with the construction of the new buildings. Lidl Sverige has sustainability initiatives for improving its energy efficiency, carbon neutral transports, the reduction of plastics and food waste and the number of green buildings in place.

Press release

NIB finansierar gröna byggnader för Lidl i Sverige