Sweden Announces Preliminary Details of Green Bond

    Stockholm (NordSIP)  – The Swedish National Debt Office (Riksgälden) announced the maturity range, amount and dealers for its green bond scheduled for August

    According to the Swedish issuer, the green bond should have a maturity of between seven to ten years. The final maturity will be set and communicated as the terms of issuance are announced towards the end of August. The green bond will be issued in Swedish kronor and under the Debt Office’s programme for Euro Medium Term Notes (EMTN) and be worth approximately SEK 20 billion.

    “Investor demand for the green bond seems to be strongest for maturities between seven and ten years. A maturity within this range is also well-suited to our current borrowing plan and overall debt management,” says Johan Bergström, Acting Head of Funding at the Debt Office.

    A group of banks has been mandated to explore investor interest. The Debt Office has appointed Barclays, Danske Bank, NatWest Markets, SEB and Swedbank as joint lead managers of the issue. SEB also acts as structuring advisor for the green bond.

    In June, the Government adopted and presented Sweden’s Sovereign Green Bond Framework and the selection of budget expenditures to which the bond will be linked. The framework was rated “dark green” – the highest grade – by second-opinion provider Cicero. The proceeds will be linked to expenditures that go towards meeting Sweden’s environmental and climate goals.

    Image by Giraffew 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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