Swedbank acts as one of the Joint Lead Managers for the Kingdom of Sweden’s first Sovereign Green bond
On September 1st 2020, Swedbank acted as one of the Joint Lead Managers for the Kingdom of Sweden’s first Sovereign Green bond of SEK 20 billion and maturity of 10 years. The transaction was issued under the newly established Green Bond Framework, which has recived a ‘Dark Green’ label. Sweden is the first country to receive the highest possible category shading, which corresponds well with the Government’s ambition to act as a pioneer within sustainability.
In June, the Swedish Government adopted and presented Sweden’s Sovereign Green Bond Framework (“the Framework”) which is aligned with its ambitious climate and environmental policy. The independent research center CICERO Shades of Green, has provided a second opinion of the Framework, in which it received the highest possible category shading, Dark Green. The proceeds from issuance of the green bond will be linked to central government expenditures supporting the goal of carbon neutrality by 2045. Examples of eligible expenditures include “the greenest of the green” expenses such as maintenance of state transport infrastructure, protection of valuable natural environments and promoting projects for renewable energy.
“Domestic transport currently accounts for one third of Sweden’s total emissions. A majority of the funds raised from this issuance are thus set to finance maintenance of state transport infrastructure such as railways to significantly reduce the climate impact. It is also an area that has rarely been in focus when other countries have issued Sovereign Green bonds”, says Katya Nolvall, Head of Sustainable Capital Markets at Swedbank.
“We’re very happy to be part of the inaugural green issuance by the Kingdom of Sweden. It’s encouraging to see an issuer with already ambitious environmental goals, taking this step and issue a green bond. The issue attracted both domestic, as well as international investor demand resulting in the largest green bond to date from a Nordic SSA”, says Linda Lindblad, Head of SSA Origination at Swedbank.
In terms of geographical breakdown, Swedish investors stood for 61.5%, UK based investors for 17.9%, and 20.6% where allocated to various other countries. As for type of investors, pension funds and asset managers where allocated 45.6% and 32.9% respectively. Further, insurance stood for 8.5%, bank treasuries 8.1%, and 4.9% where allocated to other types of investors.
More information
Link to the Kingdom of Sweden’s press release
Sweden’s sovereign green bond framework
Swedbank Sustainable Financing
Contact:
Unni Jerndal, Presschef, Swedbank, ph. +46 73 092 11 80
Per-Åke Nyberg, Head of Investment Banking, Swedbank, ph.+46 70 946 78 98
Swedbank encourages a sound and sustainable financial situation for the many households and businesses. As a leading bank in our home markets of Sweden, Estonia, Latvia and Lithuania, Swedbank offers a wide range of financial services and products. Swedbank has over 7 million retail customers and around 600 000 corporate customers and organisations with 160 branches in Sweden and 96 branches in the Baltic countries. The group is also present in other Nordic countries, the US and China. Read more at www.swedbank.com