OP Mortgage Bank to issue the first-ever green covered bond in Finland

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OP Mortgage Bank will issue a green covered bond worth 750 million euros in accordance with the Green Covered Bond Framework published in November.

The green covered bond is the first of its kind issued in Finland. It amounts to 750 million euros and has a maturity of 10 years. The bond is targeted at responsible institutional investors, and proceeds raised with the bond are allocated to OP Financial Group’s home loans that are recognised as green ones according to the Framework. The sector to be financed is energy-efficient residential buildings (green buildings). The bond was priced on 18 March 2021 and it will be issued on 25 March 2021.

“By issuing the first green covered bond in Finland, we will meet investors’ increasing demand and foster a sustainable economy according to OP Financial Group’s corporate responsibility programme. Directing financing to environmentally sustainable projects supports the work to mitigate climate change”, says Sanna Eriksson, Managing Director of OP Mortgage Bank.

The green covered bond has attracted great interest among investors: the issuance was oversubscribed on Thursday more than two times and involved 55 international investors.

OP Mortgage Bank’s Green Covered Bond Framework and the associated independent Second-party Opinion from Sustainalytics as well as Green Covered Bond Investor Presentation are available at op.fi/op-financial-group/debt-investors/green-bonds.

More information:
Sanna Eriksson, Managing Director, OP Mortgage Bank, tel. 010 252 2517

Further information for the media and requests for interviews:
OP Financial Group’s Corporate Communications, tel. 010 252 8719, viestinta@op.fi

OP Financial Group is Finland’s largest financial services group, with two million owner-customers and more than 12,000 employees. We provide a comprehensive range of banking and insurance services for private and corporate customers. OP Financial Group consists of OP cooperative banks, its central cooperative OP Cooperative, and the latter's subsidiaries and affiliates. Our mission is to promote the sustainable prosperity, security and wellbeing of our owner-customers and operating region. www.op.fi

OP Corporate Bank and OP Mortgage Bank are responsible for OP's funding in money and capital markets. As laid down in the applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company OP Cooperative and other OP Financial Group member credit institutions are ultimately jointly and severally liable for each other's debts and commitments. OP Corporate Bank acts as OP Financial Group's central bank.