Green bonds

Green bonds enable investors to finance environmentally sustainable projects or assets. We offer our customers advisory services when issuing green bonds.

A growing market

Interest in green bonds continues to grow. The market is growing fast, and a volume close to SEK 80 billion was issued by Nordic borrowers in 2017, representing year-on-year growth of 49 per cent. Handelsbanken is a leading bank in the Nordic region when it comes to issuing green bonds.

What is a green bond?

Green bonds are used to finance projects or assets that promote environmental sustainability. This includes for instance green buildings, renewable energy or sustainable transport solutions that help to prevent and limit pollution. 

What is required?

Mutually agreed industry-wide standards stipulate stricter requirements on transparency, accounting and reporting. These take the form of a green bond framework, coupled with an annual follow-up of the environmental impact of the project. 

The market for green bonds also stipulates requirements on independent assessments from a third party that evaluates the projects and assets. These requirements are established in the Green Bond Principles (GBP), an industry-wide standard administered by the International Capital Markets Association (ICMA). The GBPs are updated annually. Here, Handelsbanken, along with other stakeholders, can use its vote to move development forwards. 

As of June 2017, there are also principles for social bonds that are designed to finance projects and assets with socially positive effects through the Social Bond Principles (SBP). In addition to these principles, there are also guidelines for combining green and social bonds, Sustainability Bond Guidelines (SBG). These two documents are also administered by the ICMA. The purpose of the principles is to increase transparency and integrity in the market for green bonds.

Criteria 
ICMA: Green bond principles – GBPOpens in a new window  
ICMA: Social bond principles – SBPOpens in a new window    
ICMA: Sustainability bond guidelines – SBGOpens in a new window  

Characteristics of green bonds

  • Transparency
  • Accounting
  • Reporting

How can we help?

Man och kvinna samtalar

Our sustainable financing specialists are very active as advisors to new and existing issuers of green bonds. We offer assistance in both drawing up terms and conditions, and when issuing green bonds. In 2017, Handelsbanken was advisor to almost one-third of the borrowers that issued green bonds for the first time in the Swedish market.

Is your company interested in issuing a green bond? Contact your local branch office and they will arrange a meeting with our sustainable financing specialists.

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A long way to go before Sweden is green

According to Sean Kidney, CEO of the Climate Bonds Initiative, Sweden is at the forefront when it comes to sustainability work, but this is not enough. Making a difference will require far more action.

Length: 4:50

Handelsbanken’s green bonds

In 2018, Handelsbanken issued its first green bond. By issuing green bonds, Handelsbanken can support the long-term development of sustainable solutions through the financing green projects.  Handelsbanken focuses on six of the UN Sustainable Development Goals and our green bonds support these goals. 

Our Green Bond Framework is based on the Green Bond Principles 2017 developed by the International Capital Market Association (ICMA). An independent evaluation of the framework has been carried out by CICERO (the Center for International Climate Research).

Handelsbanken's green bondsOpens in a new window