Stockholm County Council has issued a new green bond at good terms
Stockholm County Council has issued a new green bond, a loan for the financing of green projects. The loan amounts to SEK 1 billion and runs for a period of 5 years and 8 months with an interest rate of 0.82 per cent. The projects to be financed will be linked to the expansion and modernisation of public transport.
The issuance was executed as a private placement where Alecta and the Folksam Group took part. This is the largest green private placement that has been issued within the municipal and county council sector in Sweden.
Green bonds and private placements
A green bond means the money will be used solely to fund various environmental projects within the County Council's framework for green bonds and environmental programmes.
A private placement is a non-public bond transaction that is aimed at only a few investors. The purpose of a private placement is a fast borrowing process with less administration.