As sustainability climbs corporate agendas, companies now have a new way to obtain cheap, short-term financing that’s also green.
For many years, Nordea’s Securities Finance team has provided financing for clients that have a portfolio of liquid assets. The assets, which could include stocks, bonds or other listed securities, are used as collateral in exchange for cheap, short-term capital.
Now, Nordea has added a green angle to that offering. If a customer needs financing for a green project, the company can use the securities finance framework to obtain a loan that’s specifically labelled green.
“We’re excited to expand Nordea’s offering to meet companies’ growing interest in sustainable finance and to help support their transition to a sustainable future,” says Mark Kandborg, Deputy Head of Large Corporates & Institutions at Nordea. “Green securities finance loans provide a good short-term complement to the other long-term green financing structures clients may have.”
The setup includes a flexible collateral schedule and short maturity, financing clients’ liquidity needs for up to one year. That flexible and capital-light structure allows for highly competitive pricing and a low administrative burden.
The green feature of the loan aligns the lending with environmental objectives, helping customers communicate their sustainability investments and progress.