15 December 2015

City of Oslo issues first green bond

Oslo has become the latest city to tap the green bond market, with its inaugural SEK1.5 billion ($172.49 million) issue.

The bond, which has a maturity of 8.75 years and a coupon of 2.35%, is also the first from a municipal to be listed on the Oslo Børs.

The bond will be used to fund eligible projects in four key areas:

  • Energy efficiency and sustainable housing projects;
  • Water management and  water cleaning facilities;
  • Environmental transportation services; and
  • Environmental projects (including reducing the amount of vehicles in the city centre).

Environmental research firm Cicero has provided a second opinion on Oslo's green bond framework, awarding it its "dark green" classification.

SEB, Danske Bank, Nordea, Swedbank and DNB were joint bookrunners on the deal. SEB provided 52% of the order book.  

Other cities to tap the green bond market this year include Gothenburg and the City of Paris.