Lyse: Driving Norway’s grid modernisation

Nordea has supported Norwegian energy and telecom company Lyse with its green financing framework and green bond issuance in 2024. How has the company put the bond proceeds to use so far? 

In our series, “Sustainable finance in action,” we ask our clients how they are putting sustainable funding to work to drive real change. Norwegian energy and telecom company Lyse published its latest green financing framework earlier this year. The company’s Head of Treasury Christian Balchen shares what the funding has gone towards and reflects on the process of working with Nordea.

Briefly describe the company and its business:

Christian Balchen (CB): The Lyse Group is a national player in renewable and regulated hydropower and Norway’s fourth largest hydropower producer. Lyse has been a driving force behind the development of robust digital infrastructure. Through the nationwide Altibox partnership, the Group delivers broadband and entertainment services to a considerable share of the population, and through the mobile operator Ice we are building Norway's third 5G mobile network. Lyse has regionally developed the country's most varied and complete infrastructure for electricity, biogas and natural gas, district heating and cooling. The company’s shareholders are 14 municipalities from the southern part of Rogaland, and our value creation is returned to the community. The shareholders have a long-term industrial perspective on their investment and expect the company to have a positive impact on its local community, with a strategic focus for the region and satisfactory profitability.

What has the money gone towards?

CB: Lyse is currently investing in building Norway's third national 5G mobile network, which will enable more energy efficient data transfer and improve the redundancy in the Norwegian mobile infrastructure. The company is also investing in upgrading the electrical grid infrastructure to meet the current and future needs from more electrification and commercial growth in the region. Both of these investments are important in ensuring the dual transition to a more digital and sustainable economy going forward. 

What was it like to work with Nordea in setting up the framework and issuing the bonds?

CB: The process working with Nordea was very structured. The team supporting us had highly relevant experience with setting up these types of frameworks as well as experience from previous interactions with the second-party opinion (SPO) provider. They were good at challenging us, which made us well prepared and led to constructive discussions afterwards with the SPO provider. Nordea was proactive in suggesting potential investments to consider for the framework, which resulted in a framework reflecting the broad set of activities within our group and a framework we are very proud of today.