Kommuninvest has published its first green bonds impact report, following the introduction of Kommuninvest Green Loans to clients in 2015, the subsequent build-up of a portfolio of eligible assets, and the issuance of two green bonds throughout 2016. The objective of the report is to provide investors and other stakeholders with information on the impact of some 80 Swedish local government investment projects financed under the Kommuninvest Green Bonds Framework by year-end 2016.
Report highlights and impact results
- Two Kommuninvest Green Bonds issued in USD and SEK, totalling SEK 10.0 billion, of which SEK 10.0 billion was outstanding as of 31 December, 2016.
- 81 Green Bond Eligible Projects with commitments totalling SEK 17.8 billion and disbursements totalling SEK 14.5 billion at 31 December, 2016.
- Renewable energy: SEK 8.6 billion in commitments (SEK 7.1 bn in disbursements) to 27 renewable energy projects is expected to result in 1.7 TWh of annual renewable energy generation (~half of the energy production of the average Europan coal-fired power plant). This corresponds to the avoidance of 395,730 tonnes in annual CO2 emissions (~85,000 cars removed from the road).
- Green buildings: SEK 6.6 billion in commitments (SEK 6.0 bn in disbursements) to 41 projects in green buildings, expected to generate 14.8 GWh of energy savings (roughly equivalent to the energy requirements of 150,000 m2 sq.m. of modern office space, or about 1.5 times the Mall of Scandinavia in Stockholm) and resulting in an expected annual reduction in CO2 emissions corresponding to 2,020 tonnes (~the latest Scania truck model driving 62 times around the world).
- Energy efficiency in energy systems: SEK 0.2 bn in commitments (SEK 0.2 bn in disbursements) to 3 projects, expected to result in 21,510 tonnes in annual CO2 emissions savings (~3,500 Swedish citizens becoming completely carbon neutral). Projects are related to energy efficiency measures in local district heating systems.
- Water and wastewater management, public transport, waste management: SEK 2.4 billion in commitments (SEK 1.2 bn in disbursements) to 10 projects. The impact of these projects is broadbased, and includes:
– a reduction in harmful substances from wastewater treatment and expansion of access to municipal wastewater for additional 23,000 people (PEs);
– increased capacity of local public transport networks and 6 million car kilometres avoided;
– improved waste management and energy extraction by optical sorting.
About the Kommuninvest Green Bonds Framework
Under its Green Bonds Framework, Kommuninvest provides lending to Swedish municipal investment projects in eight areas, including renewable energy, energy efficiency, green buildings, public transport, water management and waste management. By mid-March 2017 Kommuninvest had built up a green loan book amounting to SEK 19.4 billion (USD 2.2 billion), committing funds to some 95 investment projects in 50 Swedish municipalities and county councils/regions.
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. Looking at the pace and direction of Swedish local government investment, Kommuninvest expects to grow its green lending portfolio from currently around 5 percent to 15-20 percent in a few years’ time.
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.
Please visit our Green Bonds web page
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, 277 municipalities and 11 county councils/regions are members of this voluntary cooperation. With total assets of around SEK 350 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.
Senior Investor Relations Manager / Head of Sustainability
tel: +46 (0)70-886 94 76