MuniFin has offered green finance for the climate and 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 climate and 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 by the Green Finance Team. The greener the project, the bigger the discount.
Green finance projects are selected and approved using MuniFin’s Green Bond Framework and MuniFin’s Green Finance Team is responsible for the approval process. The Green Finance Team consists of selected sustainability experts from the Customer Solutions division and the Capital Markets and Sustainability division. The process applies the four-eyes principle, which requires two members of the Green Finance Team to be involved in the approval process.
MuniFin’s Green Bond Framework divides projects into four categories:
- Renewable energy
- Water and waste water management
The Second Opinion for MuniFin’s Green Bond Framework has been provided by Cicero shades of green.
Green finance is funded by green bonds
MuniFin issued its inaugural green bond in 2016. MuniFin has issued green bonds in EUR, USD, AUD and GBP. Read more about the issuances in the Green Impact Report.
MuniFin aims to issue one green bond per year.
To provide investors with more detailed information about green finance projects and their impacts, MuniFin publishes impact reports annually.