Our green bonds finance projects which help to solve the future’s climate issues today.
Green Funds for Green Solutions
KBN was one of the first European issuers to issue a green bond in USD. The past years we have experienced a strong increase in investor demand for our issues in USD, NOK, AUD and SEK.
By the end of 2019, we had the equivalent of NOK 16,6 billion outstanding in green bonds, comprising SEK, NOK, USD and AUD. This makes us one of Norway’s most active issuers of green bonds. KBN has offered reduced-rate green loans for investments that contribute to solving the climate challenges of the future since 2010. KBN’s green loans are financed by green bonds. The demand for green loans has risen substantially the last few years, mirroring the increased interest for green bonds. In 2019 the green lending portfolio increased by 3.7 billion NOK. Green loan growth accounted for 49 percent of the bank’s total growth in lending. In 2019, 6.2 billion NOK were disbursed to green projects.
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:
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.
KBN’s green bond framework was updated in June 2016 and was rewarded with CICERO’s highest “dark green” rating, signalizing that the investments financed are aligned with the 2050 climate targets. The framework is subject to an update in 2020.
In line with KBN's growing Green Lending portfolio, Green Bond issuance has continued to grow. By January 2020, KBN has issued Green Bonds in USD, NOK, AUD and SEK and current Green Bond issuance outstanding amounts to USD 1.90 billion equivalent.