Sweden’s Inaugural Green Bond Issue Raises $2.3 Billion to Strong Demand
The Swedish National Debt Office announced that Sweden’s first green bond issue, raising SEK 20 billion ($2.3 billion), met strong demand, with an order book exceeding SEK 47 billion, and a diverse investor base across geographies and investor categories.
Anna Sjulander, Acting Head of Debt Management at the Debt Office, said:
“There is clearly a widespread commitment to sustainability in the financial markets, which is gratifying to see. Investors from around the world have shown great interest in our green bond as well as in Sweden’s environmental and climate policy.”
The National Debt Office stated that the proceeds from the offering will be linked to budget expenditures that contribute to achieving Sweden’s environmental and climate objectives. Sweden introduced its Green Bond Framework in June, outlining the selection of budget expenditures to which the proceeds from the bond will be linked, including protection of valuable natural environments, climate investments and railway maintenance. The framework has received a “dark green” rating, the highest grade provided by CICERO Shades of Green.
The bond was issued with a maturity of 10 years, and the yield was set at 0.09 per cent. Overall, 72 investors entered the order book, with the bond allocated 46% to pension funds, 33% to asset managers, with the remainder to insurance companies, banks and other investors. By geography, Sweden-based investors were allocated 61.5% of the bonds, with 18% going to UK investors. Lead managers on the deal included Barclays, Danske Bank, NatWest Markets, SEB and Swedbank.
Johan Bergström, Acting Head of Funding at the Debt Office, said:
“Backed by Sweden’s high environmental and climate ambitions coupled with stable public finances, we have been able to offer a low-risk bond with a dark-green stamp of approval. This attracted both our traditional and new investors.”