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SEB helped issue largest Green Bond to date

SEB acted as a lead manager when Germany's KfW bank launched a 1.5 billion euro Green Bond this week, the largest single transaction in the segment to date.

As one of the world's largest providers of environmental and climate protection finance, AAA rated KfW aims to give impetus to the small green bond market in Germany and to attract new investors. The issue proceeds are to be used for financing of climate change measures, in particular for renewable energy projects.

Jonas Lundberg, head of Markets in Germany, says the issuance is a strong signal of support for the development of responsible investing, taking it from a niche product into the broader capital market.

“Thanks to its long standing experience in environmental and climate protection finance, and its excellent reputation in the international capital markets, KfW is able to convincingly support the shaping of this new market segment,” Lundberg says.

SEB was a driving force when the World Bank in 2008 issued the first green bond to fund environmental initiatives in developing countries. Since then the concept has grown and evolved. In 2012 development banks, companies and governments issued Green Bonds worth 3 billion dollars in total. The amount rose to almost 10 billion dollars in 2013 and in the first six months of 2014 the sum was about 20 billion dollars.

At the beginning of 2014, SEB and 12 other financial institutions signed on to the “Green Bond Principles”, which are voluntary process guidelines for issuing Green Bonds.