Financing with a benefit to society
Kommuninvest accounts for about half of the loans that finance investments in Swedish municipalities and county councils. Since 2015 are we offering Green Loans for projects that specifically take the climate into consideration.
The increase in investments by the local governments is explained by Sweden’s rapid population growth, increased migration to the larger cities, as well as considerable needs for the refurbishment of older infrastructure.
Kommuninvest’s role as Sweden’s local government debt office entails offering secure and cost-effective financing to its members and customers – Swedish municipalities, county councils/regions, municipal companies and other local government actors.
Since its inception in 1986, Kommuninvest has helped lower the local government sector’s borrowing costs to the tune of many billion kronor. Ultimately this has benefited citizens who have had access to improved public services at both local and regional levels.
Municipalities and county councils/regions should be able to rely on our always being able to offer financing, regardless of uncertainty in the financial markets. We are well equipped for this, through major liquidity reserves and our position as a monetary counterpart to the Riksbank. During the financial crisis of 2008/09, Kommuninvest’s cooperative model held up well under severe strain.
Green Loans and Green Bonds
We are now taking the next step. Effective from June 2015, our customers are able to sign Green Loan agreements – environmentally certified loans for investment projects with a positive impact for the climate and environment. By assisting the Swedish local government sector in the transition towards a more sustainable society, we contribute actively to achieving Sweden’s environmental objectives.
Our plan is to issue Green Bonds at the earliest possible juncture – bonds where funds raised are used for projects with strong environmental connections. Green Bonds allow institutional investors and their end customers to participate in the transition to a more sustainable society. In Kommuninvest’s case, Green Bonds will finance the Green Loans signed by our borrowers.