Sweden’s sovereign green bond sale meets strong demand

Press release 1 September 2020

The Swedish National Debt Office today raised SEK 20 billion through its first-ever sale of a sovereign green bond. The proceeds will be linked to budget expenditures that contribute to achieving Sweden’s environmental and climate objectives.

Demand was strong for the bond, which has a maturity of ten years. The total order book exceeded SEK 47 billion, including 72 separate investors. The bond was issued through a syndication, whereby joint lead managers carried out the transaction at terms approved by the Debt Office. The yield was set at 0.09 per cent.

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,” says Anna Sjulander, Acting Head of Debt Management at the Debt Office.

In June, the Government adopted Sweden’s sovereign green bond framework and 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 was rated “dark green” – the highest grade – by second-opinion provider Cicero.

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,” says Johan Bergström, Acting Head of Funding at the Debt Office.

Terms and conditions

Issuer

Kingdom of Sweden

Size

SEK 20 billion

Coupon

0.125 %

Maturity date

9 September 2030

Re-offer price

100.348

Re-offer yield

0.09 %

Lead managers

Barclays, Danske Bank, NatWest Markets, SEB and Swedbank

 

Distribution by region

Sweden

61.5 %

UK

17.9 %

EMEA

8.4 %

Other   Nordics

7.2 %

Americas

4.5 %

Asia

0.5 %

 

Distribution by investor category

Pension funds

45.6 %

Asset managers

32.9 %

Insurance

8.5 %

Bank treasuries

8.1 %

Other

4.9 %

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