Stockholm County Council has issued a new green bond. This is a way of borrowing money for investment projects with a particular environmental focus. The loan amounts to SEK 2.5 billion and runs for almost three years at an interest of 0.19 per cent. It is the sixth green bond issued by Stockholm County Council.
The green bond now issued will finance investments in the development of the Roslagsbanan suburban railway and an expansion of Huddinge Hospital, among others. The new hospital building in Huddinge is being built in accordance with the Sweden Green Building Council Gold standard.
"The County Council has issued green bonds since 2014. The current green bond is the sixth in the series. The County Council's green investments are of increasing interest to the market since the investors know that the money goes to clear and well-defined environmental projects. This is particularly noticeable in the competitive terms we are offered," says Frida Korneliusson, MD for AB Stockholms Läns Landsting Internfinans.
"The investment in the Roslagsbanan suburban railway means both increased capacity and accessibility, benefiting our residents," explains Charlotta Brask, Sustainability Manager, Stockholm County Council. "At the same time, we are taking extensive environmental consideration during the entire investment period by re-using old materials and ensuring that the natural environment for animals along the railway is safeguarded."
About green bonds
Green bonds are a way of borrowing money for investment projects with a particular environmental focus. They are a tool for raising awareness of climate-related challenges and solutions while at the same time financing green development projects in the county. The structure is similar to a traditional bond. Today, green funding* accounts for more than half of the County Council's external financing and is growing.
The money that the County Council borrows within the framework of the green bonds is earmarked for environmental projects and is held in a separate traceable account that is only used for investments that comply with the framework for green bonds.
"Through green bonds, we make it easier for conscientious small savers to get information about what their savings are going to," concludes Frida Korneliusson.
* Green bonds and loans tied to environmentally friendly projects from the European Investment Bank and the Nordic Investment Bank.