NIB Environmental Bonds

NIB has an explicit environmental mandate from its Nordic and Baltic owners to promote environmentally sustainable projects. Addressing environmental challenges is a concern shared among a growing number of fixed-income investors worldwide. In order to respond to these investors' readiness to support environmentally sustainable projects, NIB has introduced a framework which allows investors to provide funds for the Bank's environmental lending.

Under the NIB Environmental Bond (NEB) framework, the Bank can issue environmental bonds, the proceeds of which are used to finance projects which benefit the environment and support the transition to a low carbon economy. The NEB framework is aligned with the Green Bond Principles.

The debt obligations carry no project risk and are issued under NIB's standard debt issuance programmes. An amount equal to the net proceeds from the sale of the NEB issuance will be held in a separate portfolio until it is disbursed to eligible projects.

Through impact reporting, investors receive better insight and knowledge about the financed projects and their estimated impact on the environment.

Only loans to projects located in NIB member countries or the EU may be considered for financing. Eligible projects are required to belong to one or more of the project categories listed on the right.

Projects that contribute to resilience and climate change adaptation within the defined categories without necessarily showing a direct environmental impact are also eligible.

NEB categories:

  • Energy efficiency
  • Renewable energy generation
  • Transmission, distribution and storage systems
  • Clean transport solutions
  • Water management and protection
  • Resources and waste management systems
  • Green buildings
 

NEB financing, distribution per category

As of 29 January 2019
COLUMN
Renewable Energy 29%
Water management & protection 28%
Green buildings 22%
Clean transport solutions 11%
Energy efficiency 7%
Resources & waste management 3%

Project-specific impact reporting

NIB reports on project-specific impact by NEB category. Impact
is measured ex-ante according to a set of environmental indicators in line with the harmonized impact reporting guidelines under the Green Bond Principles.

Renewable energy generation

Water management & protection

Energy efficiency

Green buildings

Clean transport solutions

Resources & waste management

On Harmonised Framework for Impact Reporting

 
 

NEB transactions

List of NIB Environmental Bonds issued to date

Click here
 

NEB-financed projects

Summarised data on projects financed with NEB proceeds

Click here
 
 

Resources for download