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All types of loan with maturities of over three years can qualify as green loans. We offer a 0.1 percentage point discount on the applicable margin for green loans with KBN’s standard variable rate, a fixed rate or a floating rate linked to three-month Nibor. For more details, see our loan products.
Green loans are intended to be a tool for driving forward ambitious climate and environment projects at municipalities and are as a rule granted to new projects. Exceptions may be made for recently completed projects. Get in contact with your contact person to find out what options are available.
All green loans have to be associated with specific projects, but a green loan can be for an unlimited number of projects. In other words, if a municipality in the course of a year is investing in green and non-green projects, it will have to take out two separate loans. If it then undertakes new green projects the following year, the green loan can be ‘topped up’ with new projects in order to reduce the number of loans in the municipality’s portfolio.
Check the criteria for your type of project in the criteria document or contact us to find out if your project potentially qualifies for a green loan. If it does, complete the application form for the right category of project and submit this to your contact person. KBN will process your application and give you an answer on whether the project qualifies for the green interest rate within three working days.
You will need to submit documentation with your application, and specific information on the types of documentation required for the various types of project can be found in the criteria document. Providing your application form has been fully completed and the requisite documentation provided, we will not require you to carry out any reporting subsequently.
The discount on the interest rate depends inter alia on the size of the loan and its term.
KBN finances its green loans by issuing green bonds in the international capital markets. Borrowing money for green projects in the form of a green loan from KBN gives you access to the green bond market without you having to set up your own green bond framework or to report to investors.
We produce an annual report that details all the green projects for which KBN has provided green financing, and we also regularly publish articles about projects on our website. We also use examples of green projects in our communications with investors in our green bonds.