Green Bonds

In 2010 KBN introduced green loans, giving climate- and environmentally friendly investments an interest rate discount. In 2013, KBN was amongst the first European issuers to launch a public green bond in USD. 

Over the last few years KBN has seen an increase in the interest for our green loan program. From 2017 to 2018 the lending portfolio increased by 50 percent, equaling 7,3 billion NOK across 85 different projects. As of November 2019, the portfolio totaled 18,8 billion NOK. In parallel with the growing green lending portfolio there has been a sharp increase in investor demand for green bonds. Today KBN's outstanding issuance is equivalent to USD 1.75 billion from six green bonds. This implies that KBN is Norway’s most active green bond issuer.

KBN green bonds help finance climate- and environmentally friendly investments in Norwegian municipalities and county authorities. We offer green loans with a ten basis point discount, across eight separate categories:

• Buildings 
• Energy efficiency 
• Renewable energy 
• Transportation
• Waste management
• Water and waste water management
• Land use and area projects
• Climate change adaptation

Impact report 2018 (pdf)

Green success stories 

A green loan from KBN was used to finance Ydalir, a new, environmentally friendly district within walking distance of the centre of Elverum. Photo: Tegn_3 and Elverum Vekst

The application- and loan approval process for green loans follows the same procedure and structure of authority as other loans, but with the following amendments:

The lending officer performs a first evaluation of the green application and gives a recommendation. Subsequently the project is evaluated by a climate advisor who determines whether it meets the criteria. Finally, the recommendation is quality assured by a climate controller.

The criteria document for green loans (in Norwegian) together with our Green Bond Framework determine which investments qualify for a green loan. A green committee comprising external experts is summoned upon revision of the green loan program.

KBN has published an Impact Report yearly since 2016. This report presents the projects financed by our green bonds. KBN is also one of the contributors behind the Nordic Public Sector Issuers’ Position Paper on Green Bond Impact Reporting. This position paper forms the basis of our impact reporting.