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.