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SEB advisor when Danish government issued green bond

Tre Kronor Fort and wind turbines, Copenhagen, Denmark (stock photo)

Together with three other banks, SEB was an advisor (Joint Lead Manager) when the Danish government issued a green so-called twin bond worth 7.75 billion Danish kroner (1.04 billion euros). The term is 10 years and the yield corresponds to 3.053 per cent annually, which is 1.5 interest basis points lower than the corresponding regular bond (not green). 

It was the German government that introduced the twin bond concept in 2020. This means that green bonds are issued with the same financial characteristics as one of the government's conventional bonds, i.e. the same maturity, interest payment date and coupon rate. If necessary, the investors can exchange the green bond for a regular one (the twin) free of charge.

The Danish state has not specified in detail what it will use the money for, but all investments will follow the framework that the state itself developed together with its advisers. The framework includes investments in renewable energy and support for the transition to renewable fuels in the transport sector.

The Danish government issued the bond in question through syndication instead of a traditional auction procedure. Syndication provides the opportunity to borrow large volumes in a short time and with greater transparency for the lenders compared to auction.

About the bond issue (nationalbanken.dk)