Baltic Blue Bond Targets Water Treatment

    NordSIP (Stockholm) – On Thursday the Nordic Investment Bank issued a Baltic Blue Bond. It is the first blue bond in the market with funding earmarked according to the Green Bond Principles. The five-year bond worth SEK 2 billion pays a 0.375% coupon and was priced at a discount to yield 0.443%.

    “We have long been seeking a solution, on how to finance better health of the Baltic Sea and are therefore thrilled to participate in NIB’s Blue Bond. We hope that this, blue bond, will be followed by many others,” says Helena Lindahl, Senior Portfolio Manager Storebrand Asset Management (SPP), one of the investors in this bond.

    “NIB has long been playing an important role in the recovery of the Baltic Sea. During the past fifteen years, the Bank has financed numerous projects with positive effects on marine life and the quality of surface and groundwater”, says Lars Eibeholm, Head of Treasury at NIB.

    “The Baltic Sea region is the home of nine countries and ninety million people. The health of the region is consequently very important. I therefore urge more companies in the region to take the opportunity and proactively utilize earmarked, green or blue loans. It is a very effective way to show determination, achieve true impact and long term sustainable growth,” concludes Lindahl.

    The Baltic Blue Bond funding is earmarked for projects related to wastewater treatment, flood protection and projects aimed at protecting and restoring the marine ecosystems in the region. One of the projects that will receive financing from the Baltic Blue Bond is the Nya Slussen project in Stockholm, where it will finance clean transport solutions, but also the redevelopment of the Slussen water locks. The expansion of the water locks will increase the drainage capacity and accommodate higher floodgates by adding two larger water channels beside the locks.

    Picture from Pexels

    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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