The third green bond from Kommuninvest, the Swedish local government debt office, met great demand when it was issued on Tuesday. The new USD 500mn 4-year RegS/144A Green Bond was Kommuninvest’s third green bond, following its inaugural USD 600 mn 3-year transaction in March 2016 and the SEK 5 bn 4-year transaction in October 2016. This means that the three largest Green Bonds ever issued by a Swedish entity have been issued by Kommuninvest.
The Kommuninvest Green Bonds finance lending to Swedish municipal investment projects in renewable energy, energy efficiency, green buildings, public transport and water management. As of mid-May, Kommuninvest had built up a green loan book amounting to SEK 19.4 billion (USD 2.2 billion), committing funds to nearly 100 investment projects in 60 Swedish municipalities and county councils/regions.
Comment from Anders Gånge, Head of Funding & Treasury at Kommuninvest:
– With this third green bond, following shortly after the publication of our first green bonds impact report, we feel we have firmly established our green bonds framework in the market. We are again pleased with the strong demand for green bonds from Kommuninvest, and particularly happy to see such a diversified and high-quality order book, with several renowned dark green investors participating.
Kommuninvest expects to continue to grow its green loan portfolio, and to be able to be a frequent issuer of green bonds in multiple currencies. In the build-up phase of the green framework, the strategic focus is on USD and SEK issuance.
– Looking at the pace and direction of Swedish local government investment, we see a lot of potential for further growth in green lending, says Anders Gånge. We estimate that, in a few years, 15-20 percent of our lending will finance green projects.
Tomas Werngren, Kommuninvest’s CEO, believes that local government entities can provide significant contributions towards greening financial markets, which by world leaders has been identified as an important component to achieve global climate objectives.
– In Sweden, the local government sector is driving green bonds issuance. The sector invests well in excess of SEK 100 billion annually, with a clear focus on sustainability and environmental benefits. They are key to achieving Sweden’s ambitious environmental targets.
According to the Kommuninvest Green Bonds Framework, all eligible projects must be approved by its environmental committee, comprising independent environment and climate experts from the Swedish local government sector. The environmental committee audits and finally approves green loan applications, reviews green loan reporting by borrowers and approves investor impact reporting.
Kommuninvest’s role as an aggregator and conduit issuer for cost-efficient public sector investments has been recognized by the OECD, in its report “Green Bonds: Country Experiences, Barriers and Options” published in 2016 in support of the G20 Green Finance Study Group. The complete list of projects financed by Kommuninvest Green Bonds can be found below.
Kommuninvest green bonds have received strong support from environmentally focused accounts including AP3, AP4, AP7, Folksam Group, NIB, SPP Storebrand and United Nations Joint Staff Pension Fund. Among investors in Tuesday’s USD-denominated Green Bond were Affirmative IM Partners, Amundi, Andra AP-fonden, California State Teachers Retirement System, Praxis Impact Bond Fund and SEB Investment Management.
More information
Please see Press points for more information and visit our page about Green Bonds to consult the 2016 Green Bonds Impact Report. The list of eligible projects, approved as of May 16 2017, is available below.
About Kommuninvest
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 288 municipalities and county councils/regions are members of this voluntary cooperation, out of a total of 310 Swedish local governments. With total assets of around SEK 360 billion (USD ~41 billion), Kommuninvest is the largest lender to the local government sector and the sixth largest credit institution in Sweden. The head office is located in Örebro.
Contact information
Anders Gånge, Head of Funding & Treasury,
tel: +46 10 470 87 12, e-mail: anders.gange@kommuninvest.se
Björn Bergstrand, Head of Media Relations / Head of Sustainability,
tel: +46 (0)70-886 94 76, email: bjorn.bergstrand@kommuninvest.se
Eligible Projects, Kommuninvest Green Bonds Framework, approved as by May 16, 2017
| Project ID |
Borrower | Loan amount, SEKmn* | Project category | Description |
| 1 | ESKILSTUNA KOMMUN | 165 | RENEWABLE ENERGY |
Four new wind power turbines |
| 2 | SKELLEFTEÅ STADSHUS AB | 650 | RENEWABLE ENERGY |
Blaiken wind power plant, phase 2 and 3 |
| 3 | JÄRFÄLLA KOMMUN | 317 | GREEN BUILDINGS |
Herresta School in Barkarby district |
| 4 | KARLSTADS KOMMUN | 900 | RENEWABLE ENERGY |
Heden 3 – new bio-fuelled combined power and heating plant (district heating) |
| 5 | BORÅS STAD | 1 400 | RENEWABLE ENERGY |
Sobacken – new bio-fuelled combined power and heating plant (district heating) |
| 6 | ÅREHUS AB | 44 | GREEN BUILDINGS |
New nursery school in Undersåker |
| 7 | BIOGASBOLAGET I MELLANSVERIGE AB |
49 | RENEWABLE ENERGY |
Facility for biogas production located at Mosserud recycling station in Gottebol |
| 8 | TRELLEBORGS KOMMUN | 241 | PUBLIC TRANSPORTATION |
Co-financing for regional train network Trelleborg-Malmö |
| 9 | TROLLHÄTTAN TOMT AB | 5 | GREEN BUILDINGS |
Energy efficiency measures in two municipal properties |
| 10 | TROLLHÄTTAN TOMT AB | 43 | GREEN BUILDINGS |
Construction of new nursery school |
| 11 | KARLSKOGA ENERGI OCH MILJÖ AB |
35 | WATER MANAGEMENT |
Upgrading of wastewater treatment facility to comply with EU requirements regarding nitrogen purification. |
| 12 | KARLSKOGA ENERGI OCH MILJÖ AB |
250 | RENEWABLE ENERGY |
Refinancing of 24 existing small scale hydropower plants. |
| 13 | KARLSKOGA ENERGI OCH MILJÖ AB |
190 | RENEWABLE ENERGY |
Facilities for district heating, including combined power and heating plant and distribution pipelines. |
| 14 | GÄVLE KOMMUN | 120 | RENEWABLE ENERGY |
Forsbacka biogas production facility |
| 15 | KOMMUNFASTIGHETER I KNIVSTA AB |
164 | GREEN BUILDINGS |
Construction of the new Högås school (Sweden’s first school built as a passive house) |
| 16 | UMEÅ KOMMUN | 76 | PUBLIC TRANSPORTATION |
Electric buses for local transport. |
| 17 | UMEÅ KOMMUN | 300 | GREEN BUILDINGS |
New nursery schools (Solbacken, Morgonstjärnan & Hedlunda) and new schools (Flurkmark & Storsjö) |
| 18 | UMEÅ KOMMUN | 268 | GREEN BUILDINGS |
Dedicated buildings for public admistration, care and sports |
| 19 | UMEÅ KOMMUN | 276 | GREEN BUILDINGS |
Energy efficiency measures in existing multi-family housing units, including Sustainable Ålidhem area |
| 20 | UMEÅ KOMMUN | 675 | GREEN BUILDINGS |
Production of new low-energy multi-family housing units, including Sustainable Ålidhem area |
| 21 | EKSTA BOSTADSAKTIEBOLAG |
119 | GREEN BUILDINGS |
Passive houses (Vallda Heberg geriatric care housing unit in Kungsbacka) |
| 22 | EKSTA BOSTADSAKTIEBOLAG |
77 | GREEN BUILDINGS |
Passive houses (Vallda Heberg senior housing units 55+ in Kungsbacka) |
| 23 | SÖDERTÖRNS ENERGI AB | 1 200 | RENEWABLE ENERGY |
District heating, district cooling and electricity for the Botkyrka, Huddinge and Salem municipalities.
Stockholm |
| 25 | TROSABYGDENS BOSTÄDER AKTIEBOLAG |
33 | GREEN BUILDINGS |
Multi-family housing in Trosa. 16 apartments based on Kombo housing concept developed by SABO (the Swedish Association of Public Housing Companies). |
| 26 | LINDESBERGSBOSTÄDER AB |
104 | GREEN BUILDINGS |
Multi-family housing in Lindesberg with 70 apartments (Ålkilsbacken) |
| 27 | HÄRJEGÅRDAR FASTIGHETS AKTIEBOLAG |
25 | GREEN BUILDINGS |
Multi-family housing in Skansen area, based on Kombo housing concept developed by SABO |
| 28 | VÄXJÖ KOMMUNFÖRETAG AB |
50 | GREEN BUILDINGS |
Vikaholm nursery school for 160 children, first municipal building in Växjö to obtain environmental certification (Miljöbyggnad Silver). |
| 29 | VÄXJÖ KOMMUNFÖRETAG AB |
310 | GREEN BUILDINGS |
Pär Lagerqvist school in Växjö for 1,000 students. Highest environmental certification (Miljöbyggnad Gold). >25% of the structure in massive wood. |
| 30 | FALU ENERGI OCH VATTEN AB |
217 | WATER MANAGEMENT |
New drinking water source for 110,000 people in Falun and Borlänge municipalities |
| 31 | LANDSTINGET I VÄRMLAND | 1 050 | GREEN BUILDINGS |
New operations facility at the main hospital in Karlstad. Environmental certification according to LEED Gold. |
| 32 | LANDSTINGET I VÄRMLAND | 724 | GREEN BUILDINGS |
New buildings at the main hospital in Karlstad. Environmental certification according to EU Green Building. |
| 33 | KUMBRO VIND AB | 62 | RENEWABLE ENERGY |
Co-financing for construction of wind farm with 16 turbines. |
| 34 | AB KARLSBORGSBOSTÄDER |
100 | GREEN BUILDINGS |
52 apartments in the Strömmen project, Skaraborg. |
| 35 | TORSBY BOSTÄDER AB | 25 | GREEN BUILDINGS |
Multi-family housing with 23 apartments in Torsby. |
| 36 | TROLLHÄTTAN TOMT AB | 55 | GREEN BUILDINGS |
New office building, certification according to Miljöbyggnad (Environmental Building) Silver |
| 37 | UMEÅ KOMMUN | 54 | RENEWABLE ENERGY |
Investment in commercial scale torrefaction unit for production of black pellets, at municipal subsidiary BioEndev. |
| 38 | UMEÅ KOMMUN | 123 | RENEWABLE ENERGY |
Three wind turbines with a total installed capacity of 9.6 MW. |
| 39 | AB KRISTIANSTADSBYGGEN | 26 | GREEN BUILDINGS |
Multi-family housing with 16 units in Vä area, based on Kombo housing concept developed by SABO |
| 40 | AKTIEBOLAGET VINGÅKERSHEM |
21 | GREEN BUILDINGS |
Multi-family housing with 14 units in Vingåker, based on Kombo housing concept developed by SABO |
| 41 | ÄLMHULTS KOMMUN | 215 | GREEN BUILDINGS |
New Elme School for 800 students, built as a passive house. |
| 43 | AKTIEBOLAGET SJÖBOHEM | 151 | GREEN BUILDINGS |
New energy-efficient swimming facility. Environmental certification according to Miljöbyggnad Silver. |
| 44 | FALU ENERGI OCH VATTEN AB |
64 | ENERGY EFFICIENCY |
Investment in linking together the district heating networks of Falun and Borlänge through a pipeline, with considerable environmental benefits. |
| 45 | FALU ENERGI OCH VATTEN AB |
30 | RENEWABLE ENERGY |
Five wind power turbines at Högberget, total capacity 10 MW (20% ownership). |
| 46 | FALU ENERGI OCH VATTEN AB |
82 | RENEWABLE ENERGY |
Five wind power turbines at Tavelberget, total capacity 10 MW (50% ownership). |
| 47 | REGION JÄMTLAND HÄRJEDALEN |
38 | RENEWABLE ENERGY |
Wind power turbine, capacity 3 MW |
| 48 | SKARA KOMMUN | 320 | GREEN BUILDINGS |
New Viktoria high school. Environmental certification according to Miljöbyggnad Silver. |
| 49 | ARVIKA FJÄRRVÄRME AKTIEBOLAG |
127 | RENEWABLE ENERGY |
Investment in district heating company, installed capacity 74 MWh |
| 50 | ARVIKA KRAFT AB | 15 | RENEWABLE ENERGY |
Construction of solar energy production facility, expected annual production 1 MWh. |
| 51 | ARVIKA KRAFT AB | 60 | RENEWABLE ENERGY |
Investment in 26 existing hydro power stations. |
| 52 | HUDDINGE KOMMUN | 250 | RENEWABLE ENERGY |
Biofuels-based combined power and heating plant (Igelsta), jointly financed by Botkyrka, Huddinge and Salem municipalities in Stockholm area. |
| 53 | BOTKYRKA KOMMUN | 410 | RENEWABLE ENERGY |
Biofuels-based combined power and heating plant (Igelsta), jointly financed by Botkyrka, Huddinge and Salem municipalities in Stockholm area. |
| 54 | MALÅ KOMMUN | 37 | GREEN BUILDINGS |
Multi-family housing in Malå municipality, based on ”Trygga Boendet” and Kombo housing concept developed by SABO |
| 55 | BORÅS STAD | 1 100 | WATER MANAGEMENT |
Sobacken – new wastewater treatment plant |
| 56 | LESSEBO FJÄRRVÄRME AB | 177 | RENEWABLE ENERGY |
Expansion of biofuels-based district heating plant |
| 57 | SYDVÄSTRA STOCKHOLMSREGIONENS VA-VERKSAKTIEBOLAG, SYVAB | 268 | WATER MANAGEMENT |
Upgrading of Himmerfjärden wastewater treatment plant, leading to reduced nitrogen and phosphorus emissions and increased biogas production. |
| 58 | KIFAB I KALMAR AB | 100 | PUBLIC TRANSPORTATION |
Railway maintenance depot in Kalmar. |
| 59 | HALMSTADS RÅDHUS AB | 20 | GREEN BUILDINGS |
Energy-plus multi-family house in Lyngåkra. |
| 60 | HALMSTADS RÅDHUS AB | 125 | WASTE MANAGEMENT |
Optical waste sorting facility at Kristinehed. |
| 61 | VAGGERYD-SKILLINGARYDS BOSTADS AB |
30 | GREEN BUILDINGS |
Multi-family housing with 16 units at Liljedal, based on Kombo housing concept developed by SABO. |
| 62 | VAGGERYD-SKILLINGARYDS BOSTADS AB |
30 | GREEN BUILDINGS |
KV Mjölnaren |
| 63 | FINSPÅNGS KOMMUN | 70 | GREEN BUILDINGS |
Multi-family housing unit with 32 apartments (Majoren). |
| 64 | MJÖLBY SVARTÅDALEN ENERGI AB |
216 | RENEWABLE ENERGY |
Expansion of biofuels-based combined power and district heating plant in Mjölby. |
| 65 | SKELLEFTEÅ STADSHUS AB | 179 | RENEWABLE ENERGY |
Blaiken wind power plant, phase 4 |
| 66 | SKELLEFTEÅ STADSHUS AB | 71 | ENERGY EFFICIENCY |
Flue gas condensation investment at the Hedensbyn bioenergy production plant. |
| 67 | KALMARHEM AB | 30 | GREEN BUILDINGS |
Multi-family housing with 31 units at Vallmon, based on Kombo housing concept developed by SABO. |
| 68 | VIMMERBY ENERGI & MILJÖ AB |
331 | RENEWABLE ENERGY |
New biofuels-based combined power and heating plant at Tallholmen. |
| 69 | RÄTTVIKS TEKNIK AB | 85 | WATER MANAGEMENT |
Upgrading and expansion of Rättvik wastewater treatment facility |
| 70 | LEKSANDS VATTEN AKTIEBOLAG |
115 | WATER MANAGEMENT |
Upgrading and expansion of Leksand wastewater treatment facility |
| 71 | SKÖVDE KOMMUN | 130 | GREEN BUILDINGS |
Billinge school (phase 1), certification according to Miljöbyggnad (Environmental Building) Gold |
| 72 | SKÖVDE KOMMUN | 85 | GREEN BUILDINGS |
Billinge school (phase 2), certification according to Miljöbyggnad (Environmental Building) Gold |
| 73 | SKÖVDE KOMMUN | 30 | GREEN BUILDINGS |
Construction of Bissgården pre-school |
| 74 | SKÖVDE KOMMUN | 30 | GREEN BUILDINGS |
Construction of Claesborg pre-school |
| 75 | SKÖVDE KOMMUN | 30 | GREEN BUILDINGS |
Construction of Tidan pre-school |
| 76 | KOPPARSTADEN AB | 100 | GREEN BUILDINGS |
Construction of Vitsippan multi-family housing unit, certification according to Feby 12 (passiv house) |
| 77 | LUDVIKA KOMMUN | 39 | GREEN BUILDINGS |
Energy efficiency measures in multiple municipal properties. |
| 79 | ALE KOMMUN | 180 | GREEN BUILDINGS |
Ale school, built with passive house technology |
| 80 | MARIESTADS KOMMUN | 250 | GREEN BUILDINGS |
Prisma and Unica schools, certification according to Miljöbyggnad (Environmental Building) Silver |
| 81 | NORRENERGI & MILJÖ AB | 1 180 | RENEWABLE ENERGY |
Balance sheet financing. 99% of Norrenergi energy production is from renewable sources. |
| 82 | VÄSTRA MÄLARDALENS ENERGI OCH MILJÖ AB |
100 | ENERGY EFFICIENCY |
Connecting the Köping and Arboga district heating grids and increasing the use of waste heat recovery |
| 83 | KUMBRO VIND AB | 15 | RENEWABLE ENERGY |
Wind power turbines at Ryssbol, total capacity 13 MW |
| 84 | HÄLLEFORS BOSTADS AB | 11 | GREEN BUILDINGS |
Energy-efficient nursery school, with possibility to transform into senior housing if need arises |
| 87 | AB TIERPSBYGGEN | 68 | GREEN BUILDINGS |
Multi-family housing in Tierp, Badhusgatan phase 1. Based on Kombo housing concept developed by SABO (the Swedish Association of Public Housing Companies |
| 88 | AB TIERPSBYGGEN | 80 | GREEN BUILDINGS |
Multi-family housing in Tierp, Badhusgatan phase 2. Based on Kombo housing concept developed by SABO (the Swedish Association of Public Housing Companies |
| 89 | AB TIERPSBYGGEN | 60 | GREEN BUILDINGS |
Student housing with 52 units (Högbergsparken). |
| 90 | KRISTIANSTADS KOMMUN | 16 | ADAPT MEASURES |
Construction of flood protection barrier |
| 91 | AB EIDAR TROLLHÄTTANS BOSTADSBOLAG |
59 | GREEN BUILDINGS |
Multi-family housing in Trollhättan (Skördetröskan), 26 apartments |
| 92 | HEDEMORA KOMMUNFASTIGHETER AB |
29 | RENEWABLE ENERGY |
Wind power investment |
| 93 | NORRENERGI AB | 70 | RENEWABLE ENERGY |
Balance sheet financing. 99% of Norrenergi energy production is from renewable sources. |
| 94 | ENKÖPINGS KOMMUN | 150 | GREEN BUILDINGS |
Construction of low-energy Munksund preschool and school |
| 95 | ÄLVKARLEBY KOMMUN | 300 | GREEN BUILDINGS |
Construction of senior housing unit for 100 elderly |
| 96 | NORRA DALARNAS LOKALER AB |
200 | GREEN BUILDINGS |
New Älvdalen school |
| 97 | VIMMERBY KOMMUN | 189 | RENEWABLE ENERGY |
New biofuels-based combined power and heating plant at Tallholmen. |
| 98 | NYKÖPINGS KOMMUN | 226 | GREEN BUILDINGS |
New Alpha upper school in Nyköping |
| 99 | NYKÖPINGS KOMMUN | 55 | GREEN BUILDINGS |
New Svalsta preschool in Nyköping |
| 100 | NYKÖPINGS KOMMUN | 55 | WATER MANAGEMENT |
Upgrading and expansion of the Brandholmen wastewater treatment plant avloppsreningsverk |
| 101 | JÖNKÖPINGS RÅDHUS AB | 400 | GREEN BUILDINGS |
Construction of Strandängen, a new city district |
| Total, SEK million | 19 423 | |||
| * Committed loan amount | ||||
