SEB was again sole lead manager when a 200 million dollar fixed-rate, four-year green bond was recently issued, this time in cooperation with World Bank subsidiary International Finance Corporation (IFC).
SEB has worked closely with the World Bank on all green bond issues done so far, but this was the first time with IFC. The World Bank Green Bonds are designed to raise funds for investment in low-carbon projects in developing countries and are AAA-rated.
IFC vice president for Business Advisory Services Rachel Kyte said: “IFC has made a commitment to continue growing its climate friendly business, and the proceeds of the green bond will help us achieve those goals.”
Since the first green bond was issued in 2008, about 1.5 billion dollars has been invested in them globally, with roughly 480 million dollars coming from U.S.-based institutions.
Those institutions include the California State Teachers' Retirement System, the New York State Common Retirement Fund and the United Nations Joint Staff Pension Fund. All three are major investors with around 300 billion dollars under management in total. Other investors include WWF Sweden, Church of Sweden, Länsförsäkringar, SEB Trygg Liv, Skandia as well as the Swedish National Pension Fund AP 2 and AP3. Specific amounts invested by these institutions are not available.
“The high interest reflects that green bonds are now available in 16 currencies and that SEB – in line with our corporate sustainability strategy – has allocated more resources to develop and market them,” says Christopher Flensborg at SEB Capital Markets.
“In terms of financial strength and legal terms, the product is the same as other World Bank issues. Monitoring and reporting are outsourced to the World Bank and the return is comparable to similar investments.”
Read more about green bonds at SEB
Read more about green bond at World Bank