Green bonds

The Debt Office is preparing to issue a green bond in August 2020. The proceeds will be linked to central government expenditures that go towards meeting Sweden’s environmental and climate goals

In June 2020, the Government decided on the framework for the green bond and as to which budget expenditures the bond will be linked. The framework is rated “dark green” – the highest grade – by second-opinion provider Cicero. The expenditures selected for the bond are within areas including climate investments, seas and water , biological diversity and railway maintenance.

With this new bond, we can offer an investment alternative with low risk and a distinctly green stamp of approval, says Anna Sjulander, Acting Head of Debt Management.

The green bond will be issued in Swedish kronor and under the Debt Office’s programme for Euro Medium Term Notes (EMTN). The Debt Office estimates that the issuance volume will be approximately SEK 20 billion.

The green bond will be issued through a syndication, which means that a group of banks will be commissioned to execute the sale.

What distinguishes the green bond is the fact that investors who purchase the bond 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.