Green bonds

Achieving fiduciary risk/return whilst improving environmental performance

The Green Bond concept was developed in 2007/2008 by SEB and the World Bank as a response to increased investor demand for engagement in climate-related opportunities. It is an investment vehicle that integrates the fiduciary element of Fixed Income products with climate mitigation and adaptation awareness, giving mainstream investors access to climate-related investment opportunities.

In a world where there is ever-increasing awareness on climate concerns, the Green Bond is a tool that raises industry engagement by encouraging investments in sustainable projects, processes and technologies with a transparency that allows investors to understand the challenges and thus diversify risk. At the same time, the Green Bond provides issuers with an opportunity to have a closer dialogue with investors and adapt issuance.

Our concept is based on simplicity and our vision is to replicate the Fixed Income market. The Green Bond uses existing Issuance Programmes and financial risk, pricing and return profile are in line with non-Green Bonds. The proceeds are allocated to eligible Green Bond projects according to pre-defined criteria, verified by environmental specialists. Transparency is guaranteed through regular reporting of the Green Bond projects.

Our mission is to make the Green Bond available across the credit and yield curves with all types of issuers (supranational, corporate, governments) and risk class. We are also developing other investment vehicles to widen the investor demographic in co-operation with various stakeholder groups, and we continue to invite both Investors, issuers and banks to join us to develop the platform. The close cooperation with Issuers like The World Bank, IFC, EDC, Kexim - and Investors like the AP Funds, Nikko aM, BlackRock, California and SSgA is enabling this mission

For more information about issuers or what SEB can do for you as an Issuer, Investor or intermediary - please contact us at greenbonds@seb.se.