Return to the Canadian market – Successful 5-year Green Benchmark
On Wednesday 30th November, KBN priced a CAD500 million 5-Year Green Benchmark.
The highly successful transaction, marked KBN’s return to the CAD market, following their inaugural CAD Green Bond in October 2021. High quality orderbook closed in excess of CAD650 million (excl. JLM) from over 20 accounts. Utilisation of KBN’s updated 2021 Green Bond Framework and the strong appeal of the KBN credit resulted in a particularly strong placement to domestic Canadian investors (71%).
- With two highly successful CAD green bond trades within little over a year KBN is now reaping the rewards of a longstanding focus towards Canadian investors. The green program is growing fast and KBN will continue to pursue opportunites in the Canadian market going forward, says Thomas Møller, Head of Funding & IR in KBN.
In terms of distribution by investor type, Banks & Bank Treasuries were the largest investor component taking 67% of final allocations, supported by strong participation from Central Banks & Official Institutions (24%) and Fund Manager / Insurance / Pension Fund accounts (9%).
In terms of geography, the transaction was well-placed amongst domestic investors (71%), EMEA (23%) and Americas ex. Canada accounts (6%).
Activity in the Kangaroo market
In addition to the CAD green bond, KBN was also active throughout November in the Kangaroo market, issuing its third AUD denominated green bond. KBN issued its first AUD green bond in 2018 and has shown commitment to this market, issuing its third successful green Kangaroo, an AUD 300 mn 3.5-year February 2026 Green Bond on 9 November.
The trade saw broad investor support, with Australian investors being allocated 35% of the bonds and Asian and EMEA investors taking 32% each. In terms of investor type, Banks and Bank Treasuries were the largest group of investors, accounting for 61%, followed by Fund Managers & Insurance taking 21% and Central Banks & Official Institutions receiving 17% of final allocations.
About KBN Green Bonds
KBN Green Bonds finance the transition to a low-carbon, climate resilient future in Norwegian local societies. KBN issued its first sustainability-themed transaction in 2010 and has been a regular issuer of public green bonds since 2013. This transaction marks the second CAD Green Bond for the issuer.
The net proceeds of the Green Bonds issued by KBN will be used to finance or re-finance Eligible Projects that have been evaluated and selected by KBN in accordance to this Green Bond Framework.