Our green bonds finance projects which help to solve the future’s climate issues today.
Green Funds for Green Solutions
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:
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.
In line with KBN's growing Green Lending portfolio, Green Bond issuance has continued to grow. By 2019, KBN has issued Green Bonds in USD, NOK, AUD and SEK and current Green Bond issuance outstanding amounts to USD 1.75 billion equivalent.