Green Bond Review – June 8: Covered Green Bonds Catching on


Stockholm (NordSIP) – DNB Boligkreditt is contemplating the issuance of its green covered bond after compatriot SpareBank 1 Boligkreditt’s inaugural launch in January.

DNB’s Green Bond Framework was designed with Multiconsult, structured in line with the Green Bond Principles (GBP) and it received full endorsement by Sustainalytics as a second party opinion. The proceeds of the green covered bond will be allocated to new and existing mortgages for energy efficient residential buildings in Norway.

- Promotion -

DNB is Norway’s largest financial services group and has one of the largest market capitalisations in the Nordic. And it also plays an important role in building a sustainable society, and sits on the 2017 list of the world’s 100 most sustainable corporations unveiled at the World Economic Forum annual meeting in Davos.

DNB presented its new green covered bond framework on May 29. According to the presentation, the aim of issuing this green covered bond is not only to diversify DNB’S investor base and to confirm DNB’s sustainability credibility and leadership, but also to aid the development of the Green Bond market. The target investors are those who support making a positive impact. This green covered bond will help fulfill the UN sustainable development goals (SDGs) and contribute to avoiding CO2 emissions and reducing global warming.

Digging into the details, the green bond framework indicates that the use of proceeds will be on new and existing mortgages for energy efficient residential buildings, buildings among the top 15% of the most energy efficient buildings in Norway in line with guidance from CBI. The eligibility criteria also require the residential building completed in 2012 or later, derived from the implementation if the TEK10 and TEK17 building codes. DNB’s Green Bond Committee will ensure compliance with the eligibility criteria and will exclude and replace green assets that become ineligible for the green portfolio. Based on Multiconsult’s estimation, DNB’s eligible green portfolio is estimated to reduce energy consumption of 304 GWh per year.  All allocation reporting and impact reporting will be available on DNB’s website.

Picture from Pexel

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Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has been awarded ‘A+’ and ‘A’ ratings by the United Nations Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investing, as part of the organisation’s 2020 Assessment Reports for signatories.

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