Green bonds

MuniFin has offered green finance for the environmentally friendly projects of its customers since the beginning of 2016. Green finance is offered to selected projects that promote the transition to low-carbon and climate resilient growth. These projects seek to mitigate or adapt to climate change.

All green finance projects are financed and located in Finland. To make environmentally friendly investments more attractive to our customers, we grant approved green finance projects a margin discount of 0–10 basis points. The discount is based on the project’s estimated environmental benefits, which are assessed and scored on a scale of 0 to 10 points by the Green Evaluation Team. The greener the project, the bigger the discount. 

Green finance projects are selected using MuniFin’s Green Bonds Framework and finally approved by the Green Evaluation Team, which consists of two or more members from environmental functions of MuniFin’s customers or other environmental public sector entities or organisations. Every project is analysed independently and only approved if there is a high likelihood of achieving long-term positive environmental effects.

MuniFin’s Green Bonds Framework divides projects into seven categories

  • Sustainable buildings
  • Sustainable public transportation
  • Water and waste water management
  • Renewable energy
  • Energy efficiency
  • Waste management
  • Environmental management incl. nature conservation

The majority of the eligible projects are long-term projects with maturities varying from 5 to 41 years.

The Second Opinion for MuniFin’s Green Bonds Framework has been provided by Cicero and Stockholm Environment Institute (SEI).

Green finance is funded by green bonds

Since the inaugural green bond issuance in 2016, MuniFin has issued three other green bond benchmarks as well as one green bond private placement. The latest one, a EUR 500 million green bond benchmark maturing in 2030, was issued in October 2020. At the end of 2020, the outstanding amount of MuniFin’s green bonds was approximately EUR 2 billion.

MuniFin aims to issue one benchmark sized green bond per year in EUR or USD.

To provide investors with more detailed information about green finance projects and their impacts, MuniFin publishes a Sustainable Bonds Impact Report annually, which includes a section for green finance as well as social finance.

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