SCBC to hit the Road with Green Covered Bond

    Stockholm (NordSIP) – This week, SBAB’s covered bond subsidiary SCBC mandated Danske Bank, SEB and Swedbank to arrange investor meetings from Monday, January 21 onwards, ahead of an inaugural SEK benchmark green covered bond, with a five-year maturity. The green covered bond is to be backed by residential mortgages for energy efficient properties, according to Sustainabonds.

    This bond follows the issuance of the first Swedish issuer SEK-denominated covered green bond from Landshypotek Bank in May 2018. On that occasion, demand reached SEK 12 billion for a final issue of SEK 5.25 billion in five-year bonds for this security backed by and financed investments made by Landshypotek Bank in Swedish forestry, according to the issuer.

    SCBC, which stands for the Swedish Covered Bond Corporation, is a subsidiary of Statens Bostadsfinansieringsaktiebolag (SBAB). SBAB was the first Swedish bank to issue a green bond, coming to the markets in June 2016 with an SEK 2 billion five-year bond. At the time 87% of the of the interest came from dedicated green investors and 35% of the interest came from international accounts. According to SBAB, Investors in the 2016 transaction included AMF Fonder, Andra AP-fonden, Captor on behalf of AI Pension, Danske Invest and Länsförsäkringar Fonder, If Skadeförsäkring AB, KfW, Linköpings Kommun, MIROVA, Naventi Fonder, SPP Storebrand, Tredje AP-fonden and Öhman Fonder.

    Picture from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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