Swedish sovereign green bond to be issued in August 2020

Press release 5 June 2020

The Swedish National Debt Office is preparing to issue a green bond in August and estimates the issuance volume to be about SEK 20 billion. The proceeds will be linked to central government expenditures that go towards meeting Sweden’s environmental and climate objectives.

The Government has today 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, biodiversity and railway maintenance.

There is great interest in the Swedish sovereign green bond and now with the framework in place we are looking forward to bringing the bond to market. The fact that the bond has the highest possible green rating is an affirmation that makes it even more attractive,” says Debt Office Director General Hans Lindblad.

The Debt Office estimates that the issuance volume will be approximately SEK 20 billion. The ceiling for the volume is determined by the selection of green expenditures as decided by the Government, which total SEK 30 billion. When setting the issuance volume, the Debt Office also takes into account its overall funding plan and the market conditions at the time of issuance.

We are now finalising the details in order to be ready to issue the green bond in August. 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 at the Debt Office.

The Debt Office aims to issue the bond in August subject to market conditions. The bond will be issued in Swedish kronor and under the Debt Office’s programme for Euro Medium Term Notes (EMTN). The maturity of the bond will be set and communicated closer to the issue date. The bond will be issued through a syndication, which means that a group of banks will be commissioned to execute the sale.

About the Debt Office’s green bond

The Debt Office is the central government’s financial manager. One of its primary responsibilities is central government debt management and borrowing. The Debt Office borrows on behalf of the central government by issuing bonds and other interest-bearing securities in the capital market. The green bond will be a supplement to the borrowing in traditional government bonds. 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.

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