Landshypotek Bank introduces Swedish forests to Luxembourg

03 January 2019

Landshypotek Bank pioneers with the world’s first forestry covered bond. It is fully committed to Swedish sustainable forestry, thus supports biodiversity and carbon dioxide reduction.

Both Swedish and foreign investors have shown enormous interest in the SEK 5.25 billion green bond. The books were above SEK 12 billion only half an hour after the issuance. It is the first and largest SEK denominated green covered bond issued in the world. The bond will be displayed on LuxSE’s Luxembourg Green Exchange (LGX), the world’s first and leading platform dedicated exclusively to sustainable financial instruments. All of the securities on the Luxembourg Green Exchange are 100% sustainable.

It is particularly gratifying that such considerable interest has been shown in Landshypotek Bank’s green bond and that it has even attracted international interest. Ringing the bell at the Luxembourg Stock Exchange for Swedish forests will be very exciting

Martin Kihlberg, Chief Sustainability Officer at Landshypotek Bank

Landshypotek Bank’s green bond framework is based on sustainable forestry renewable energy and energy-efficient buildings. It was prepared pursuant to the Green Bond Principles and the framework also received a second opinion from CICERO and was given the highest shading “Dark Green”. The amount of the bond is SEK 5.25 billion and it has a tenor of five years.

It is impressive how Sweden’s forest heritage is being managed: in a way that benefits quality and growth, especially since individuals own half of all the forests, constituting 57% of the total land area of the country

Julie Becker, Head of LGX and Member of the Executive Committee of LuxSE

“The Luxembourg Green Exchange is a leading platform for issuers, asset managers and investors with a focus on green financial instruments and securities. Strict entry requirements apply, and we are both pleased and proud that Landshypotek Bank’s green bond is being listed there,” adds Martin Kihlberg.

For some 200 years, Landshypotek Bank has financed investments in the Swedish countryside. Together with its customers, the bank enables the continued development of the Swedish countryside and rural life.