The Debt Office raised SEK 20 billion through its first-ever sale of a sovereign green bond on 1 September 2020. The proceeds are linked to central government expenditures contribute to Sweden’s environmental and climate goals.
In June 2020, the Government decided on the framework for Sweden's sovereign green bond and as to which budget expenditures the bond will be linked, including protection of valuable natural environments, climate investments and railway maintenance. The framework is rated “dark green” – the highest grade – by second-opinion provider Cicero.
The green bond was issued in Swedish kronor and under the Debt Office’s programme for Euro Medium Term Notes (EMTN). The maturity date of the bond is 9 September 2030.
What distinguishes the green bond is the fact that investors shall be able to monitor the expenditures to which it is linked, as well as the environmental and climate effects those expenditures contribute to achieving.
In this presentation, you can listen to Hans Lindblad, Director General of the Debt Office; Anna Sjulander, Acting Head of Debt Management at the Debt Office; Per Bolund, Minister for Financial Markets and Housing; and Åsa Knudsen Sterte, Deputy Director at the Ministry of Finance.
Investor presentation: Sweden's sovereign green bond (link to Youtube)
Presentation in PDF-format
Allocation and impact
The investor report presents how the proceeds from the issuance in September 2020 are distributed among the different eligible areas of expenditure in the central government budget for 2019 and 2020. The report also outlines the environmental impacts of the green expenditures wherever such information is available. The Debt Office’s compilation is based on the existing reporting of the Swedish Environmental Protection Agency and other responsible agencies.