29 May 2018
On the 17 May 2018, Landshypotek Bank has priced the first green covered bond from a Swedish issuer, and the largest ever green bond in Swedish krona. The bond aims to finance sustainable forestry in Sweden. With an issue size of SEK 5.25 billion and a maturity of five years, it is the largest green issue ever made in the Swedish market.
Given its extensive experience and knowledge in financing forestry, for almost 200 years, Landshypotek Bank is the first to issue a green covered bond that exclusively finances sustainable forestry. The bond is backed by certified forests (PEFC/FSC) or forests with green forest management plans that include setting aside areas of particular conservation value. Properties must have 5 percent deciduous trees to promote increased diversification, increased biodiversity and storm protection.
Commenting on these developments, Martin Kihlberg, Chief Sustainability Officer and General Counsel at Landshypotek Bank, stated:
“It is very gratifying with the great interest, after only a half hour the books were above 12 billion SEK, which shows that investors see the economic and environmental potential of the Swedish forests. It is particularly gratifying to be the first to issue a green covered bond backed by Swedish forests. It is unique and is fully aligned with the bank’s operations to make a real impact in promoting a sustainable society based on entrepreneurial activity across the country. It is positive that investors can see the financial and environmental potential in Swedish forests”.
To read the entire press release click here