Nordea acted as joint lead manager on the transaction.
“It has been a true pleasure to work with Landshypotek Bank on this transaction and observe the well-deserved massive interest for their green bonds. This green bond is a strong representation of the value that the green bond format brings as investors show that high climate impact is desired and promoted,” says Ebba Ramel, Country Lead Sustainable Finance Advisory at Nordea
Investor interest on the rise
The 2,765 underlying forests in the green bond asset pool represent 513,000 hectares, roughly equal to the size of Dalsland and Öland in Sweden. The forests are either certified, for example by PEFC, or have a green forest management plan with at least 5% deciduous trees and at least 5% nature conservation action plans (NO/NS), promoting diversification, biodiversity and storm protection.
The bank’s green bond framework received a “dark green” shading, the highest available, from second party opinion provider CICERO Shades of Green.
Kihlberg says investor interest in the bank’s green bond has continued to rise in recent years, both among dedicated green and general interest investors.
“The unique feature is that the underlying forests are absorbing CO2, something the green bonds from other banks are not doing to the same effect,” he adds.