Swedbank issues first ever social bond by a Nordic bank
One year after the launch of Swedbank Sustainable Funding Framework, Swedbank has issued an inaugural EUR 500 million social bond due September 2030, marking a major milestone in the Nordic banking sector.
The social bond issuance will support the bank’s longstanding commitment to societal engagement, which has played a key role throughout Swedbank’s 200-year history. The original goal was to reduce poverty and help the public achieve long-term financial security and sustainability. Today Swedbank takes a much broader perspective when integrating sustainability into its operations. Social bonds are an important tool for Swedbank to promote social lending, building on the experience in the green bond market.
“Supporting a positive development in society is a long-standing tradition of Swedbank and I am very proud of this milestone. The bank aims to contribute to the growth and development of the communities in which we operate, and we are committed to continue to do so in the future”, says Fredrik Nilzén, Head of Group Sustainability at Swedbank.
The bond proceeds are fully allocated to three out of the four social asset categories in the Sustainable Funding Framework.
Employment Generation
- through SME financing in socioeconomically weak areas in Estonia, Latvia, and Lithuania.
Socioeconomic Advancement and Empowerment
- through financing of female-owned SMEs in Estonia, Latvia, and Lithuania.
- through financing of a Swedish company that specializes in providing assistive technology and communication solutions for people with disabilities in Sweden.
- through financing of a housing project advancing the residential life in a socioeconomically weak area in Sweden.
Affordable Housing
- through financing real estates with rent levels in line with government sponsored tenancy programmes in Sweden.
The Framework also includes a social asset category enabling Access to Essential Services through education and healthcare for underserved individuals and communities.
Swedbank has the ambition to remain an active issuer in the sustainable bond market and to further incentivise the bank’s efforts to grow the volume of sustainable lending. Swedbank is committed to directly transfer back to the business areas any potential discount in the funding cost when issuing a green, social or sustainability bond.
Contact and more information:
Peter Stenborn, Investor Relations, Swedbank, phone +46 70 676 60 92
Fredrik Nilzén, Head of Group Sustainability, Swedbank, phone +46 76 773 19 26
Hannes Mård, Media Relations Manager, Swedbank, phone +46 73 057 41 95
Sustainable bond transactions
Framework and impact reports
Swedbank empowers the many people and businesses to create a better future. Our vision is a financially sound and sustainable society. Swedbank Group is the leading bank with over 7 million retail customers and 550 000 corporate customers in our four home markets Sweden, Estonia, Latvia and Lithuania. Swedbank Group is also present in other Nordic countries, the U.S. and China. Together we make your financial life easier. Find out more: www.swedbank.com