Nordic bank SEB has issued its first green bond, worth €500 million. The firm plans to use the bond to make loans to green initiatives.
SEB has been involved in socially responsible bonds since the World Bank in 2008 issued the first green bond for institutional investors.
The bank has arranged issuance of green bonds for other market players in a wide range of sectors in the Nordic region and globally, totaling $13.8 billion (€13 billion).
Now the first time SEB has issued its own bonds, earmarked for customers' green loans. These green loans will initially be offered to large companies and institutions, municipalities, county councils and housing associations.
Financial terms of green bonds and green loans are the same as for other bonds and loans. For investors, it is about combining returns with money being used for a well-defined purpose that is in line with their sustainability ambitions.
For borrowers, the logic is the same – it combines “good” financing with seal of approval that the project is green, said SEB.
To ensure that the financing is going to be used correctly, SEB is using environmental research institute Cicero.
In addition, the audit firm PwC will analyse whether SEB's processes and systems for separating green borrowing and lending is rigorous and in line with SEB´s frame work for green financing.
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