Sweden’s public sector lending agency has managed to raise $600 million following a healthy response to its green bonds issue.
Kommunivest floated a green bonds issue worth $600 million and attracted bids worth $900 million in what is being termed as the largest green bonds issue in the Nordic region.
Kommunivest will utilise the proceeds from the bond issue to finance and refinance its loan book dedicated to renewable energy and energy efficiency projects. With this latest bond issue Kommunivest broke its own record for the largest Nordic green bonds issue.
The bonds will mature in April 2019 and pay interest on a semi-annual basis at 1.90%.
The issue attracted huge interest from central banks and financial institutions which represented 37% of the total investors. They were followed by asset managers at 29% and banks at 19%. Pension and insurance funds represented 12% of the investors. Pension funds investing in the bond include United Nations Joint Staff Pension Fund.
Geographically the investors were quite diverse with 30% from the US, 26% from the Nordic countries and 24% from the Middle East and Africa region.
Kommunivest is among the largest lenders to government projects. The agency stated that it has already identified 12 government projects that will receive funding from the proceeds of the green bonds issue.