Green Bonds

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:

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

Green project list

Impact report 2019 (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 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’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.

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.

Read Impact Report 2019 (pdf)