Fana Sparebank Lists First NOK Covered Green Bond

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Stockholm (NordSIP) – On Thursday, January 9th, the Norwegian bank Fana Sparebank listed the first NOK green covered bond in the Oslo stock exchange, according to the financial institution. The NOK2 billion five-year floating rate note was originally issued on December 12th and pays 35 basis points over the 3-month NIBOR.

“We are very pleased to be able to present Norway’s first Green OMF to Norwegian investors today”, Fana Sparebank CEO, Lisbet K. Nærø, commented on the occasion of the bond issuance. “We are facing major challenges when it comes to working on climate-related issues in the years to come, and as a bank we can contribute the most through our core business and through our funding activities.”

Promotion

Fana Sparebank is a local savings bank based in Bergen, Norway, holding a
substantial share in the regional retail market. These green bonds are covered by mortgages and received a Medium Green assessment from CICERO Shades of Green. “To improve the quality of the framework, Fana Sparebank could set more ambitious and better justified green investment targets,” the assessment from CICERO noted. This could be achieved by “finalizing its internal sustainability framework, include GHG targets, develop a climate risk assessment and management strategy including adaptation and resilience, and improve environmental screening methods.”

“The biggest challenge has been with housing, and deciding what is green enough to count on,” says Fana Sparebank CFO, Kim F. Lingjærde who spearheaded the green covered bond. “We have introduced our own model, which is based on the Bergen municipal area plan and goals for future urban development. We consider walking distance to public transport, kindergartens, schools and grocery stores, as well as residential parking and the toll booth, but also waste management facilities and city bikes.”

“Together, these factors have given our framework a very satisfactory character. We identify ourselves with CICERO’s assessment that this is a step towards a long-term vision of a low-carbon society,” concludes Lingjærde.