Highest rating for the County Council's new framework for
Stockholm County Council's upgraded framework for green bonds receives the highest possible rating, dark green, as announced by the independent institute that conducted the assessment.
The independent analyst firm CICERO (Center for International Climate and Environmental Research - Oslo) has evaluated Stockholm County Council's new framework for green bonds. The new framework highlights the County Council's work for Agenda 2030 and specifies how the work with green bonds is done and reported.
"The high rating gives the County Council proof that we are developing our work in the right direction. Issuing a green bond requires a framework that describes how the process for the selection of green projects is done. Well-developed sustainability work makes more green bond investors possible. Loans through green bonds also previously proved to provide a lower interest rate on our loans," says Frida Korneliusson, CEO for AB Stockholms Läns Landsting Internfinans.
CICERO confirms that the County Council's new framework for green bonds are in line with ICMA's Green Bond Principles and provides a strong future-oriented attitude towards green financing of projects that reduce emissions and increase resilience to climate change. Other factors that they weigh in are that the framework focuses on environmental impact and climate risks in provision of health care and public transport.
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.