Sandnes Sparebank raises green funding at Oslo Børs

Back

Sandnes Sparebank today marked the admission to listing of its first green mortgage bond. The bond issue achieved a 'green' discount on its placing terms.

Oslo - 20 August 2020 - This bond issue attracted a lot of interest, and it was placed at a lower interest rate than would have been the case for a bond issue outside the green category.
"The issue went very well. There was good demand from investors, and the order book filled quickly. We estimate that the interest rate on this green issue was two basis points cheaper than for an ordinary bond issue", comments Carl Fredrik Hjelle, CFO of Sandnes Sparebank.
The bond loan has a total outstanding of NOK 300 million and an initial coupon rate of 0.77% (3M NIBOR + 0.42).
"I think you will see more green bond issues from us", adds the CFO.

In line with the bank's sustainability strategy
'If your home qualifies for a green mortgage, you will get the best borrowing terms', explains the bank's website.
"We have worked for quite some time on making it possible to offer green lending products for our customers. Offering our customers green mortgage loans is yet another milestone, and very much in line with the bank's sustainability strategy", explains Tove Linn Bjørnå, head of sustainability at Sandnes Sparebank.

Mortgage loans to finance energy-efficient homes
Sandnes Sparebank's green bond is what is known as a covered bond, and is issued by the bank's specialised residential mortgage institution SSB Boligkreditt. Covered bonds are often called mortgage bonds, because they are backed by mortgages.
The funds raised by issuing a green bond have to be used exclusively to finance environmentally-friendly projects. Green mortgage loans are provided to finance energy-efficient properties.

Strong growth in the green bond market
An ever-increasing number of borrowers are issuing green bonds, and so far this year the total outstanding value of green bonds listed at Oslo Børs has increased by 68.8% to NOK 60.5 billion. The supply of green bonds has also become more broadly based, with a number of companies from a range of different sectors using the green bond market to finance their sustainable projects.

Press Release Footer

About Euronext
Euronext is the leading pan-European market infrastructure, connecting local economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, The Netherlands, Norway and Portugal. With close to 1,500 listed issuers worth €3.8 trillion in market capitalisation as of end June 2020, it has an unmatched blue chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates Euronext GrowthTM and Euronext AccessTM, simplifying access to listing for SMEs. Euronext provides custody and settlement services through central securities depositaries in Denmark, Norway and Portugal. 
For the latest news, find us on Twitter (twitter.com/euronext) and LinkedIn (linkedin.com/euronext).

Disclaimer
This press release is for information purposes only and is not a recommendation to engage in investment activities. This press release is provided “as is” without representation or warranty of any kind. While all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication may be regarded as creating any right or obligation. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext.

This press release speaks only as of this date. Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is located at www.euronext.com/terms-use.

© 2020, Euronext N.V. - All rights reserved.