Kommunalbanken Norway ("KBN") today lists two green bond loans that will finance projects that are part of municipal energy and climate action plans in the Norwegian municipal sector. These issues bring the total value of bonds on the Oslo Børs green list to over NOK 10 billion.
"We decided to list our green bonds on Oslo Børs in order to contribute to making it an important green marketplace. We see the introduction by Oslo Børs of a separate green list as a positive step, and KBN wants to support this initiative", comments Kristine Falkgård, President and CEO of KBN, in a press release.
First exchange in the world
in January this year, Oslo Børs became the first exchange in the world to establish a separate list for green bonds. The proceeds raised by issuing green bonds must be used for environmentally friendly purposes, and a second opinion on the project has to be sought in order for the issue to feature on the green list.
KBN's two issues more than double the total value of bonds on the Oslo Børs green list. Prior to the listing of KBN's bonds today, there were six issues on the green list with total outstanding value of NOK 4.1 billion.
Significant contribution by KBN
The two bond issues listed by KBN today total USD 1 billion, equivalent to approximately NOK 7.5 billion. The
"KBN is an important and major issuer of bonds in general, and has been an issuer of green bonds since 2013. KBN's green bond issues reinforce our green list's international slant since these are the first US dollar-denominated issues on the Oslo Børs green bond list. In addition, KBN's green bonds attract a large proportion of foreign investors. We are delighted to welcome both KBN and these investors to Oslo Børs", comments Bente A. Landsnes, President and CEO of Oslo Børs.
An important tool
"Green bonds are a tool for financing environmentally friendly investments. Investors see the value of such a product and the market is growing rapidly. KBN was quick to issue green bonds, and is involved in developing the market globally", adds Kristine Falkgård.
KBN has offered a lower interest rate since 2010 on loans to projects that are part of municipal energy and climate action plans in the Norwegian municipal sector. In 2013 KBN became the first financial institution in Norway to issue a green bond, and the first issue was for USD 500 million with a 5-year maturity. KBN issued its second green bond in 2015, also for USD 500 million but with a 10-year maturity.
"Internationally, there is growing demand for climate-friendly investments. With access to major investors and important capital markets around the world, KBN is able to meet this demand and at the same time help Norwegian municipalities to realise their energy and climate action plans", explains KBN in a press release.
KBN's green bonds on Oslo Børs:
- Kommunalbanken AS 15/25 2.125% USD
- Kommunalbanken AS 13/16 0.75% USD
Green bond list:
http://www.oslobors.no/ob_eng/markedsaktivitet/#/list/bonds/quotelist/ob/OBG/false
