Oslo Børs is the first stock exchange in the world to have separate lists for green bonds. “Green finance is a preferred option for many investors. An increasing number of them want to invest in green projects. We want this new list to draw attention to green investment choices”, commented Bente A. Landsnes, President and CEO of Oslo Børs, when the lists were launched in December.
“Set to grow”
Vardar is today listing the fifth green bond issue to be listed on the Oslo Børs and Nordic ABM marketplaces (Vardar AS 14/19 FRN). There are consequently now 5 green bonds listed on the Oslo Børs marketplaces with an outstanding value of NOK 3.05 billion (see table below).
Also, the banks that arrange bond financing report that there is much interest in the area. “This is a market that is set to grow going forward”, commented Thorodd Bakken, the head of Nordea Markets in Norway, shortly after the energy utility company Nord-Trøndelag Elektrisitetsverk saw its green bond issue become oversubscribed in just two hours. “In the battle for capital, we are seeing projects that contribute to sustainable development become ever more popular. Green bonds have a number of positive aspects; investors are certain that their money is being used for environmental measures and that environmentally friendly projects are receiving capital”, added Thorodd Bakken.
Second opinions a requirement
The funds raised by issuing green bonds or certificates must be used for environmentally friendly purposes, and a second opinion on the project has to be sought in order for the issue to feature on the green list. “We require the second opinion to be made public to enable investors to understand the environmental aspects of the project”, explains Per Gunnar Ølstad, Senior Listing Manager at Oslo Børs.
The second opinions are provided by research organisations or certification companies such as CICERO, DNV GL and KPMG. The framework for BKK’s green bonds was certified by CICERO, while DNV GL provided the second opinion for the green bonds listed by Nord-Trøndelag Elektrisitetsverk and Vardar.
The green bond list can be found here: http://www.oslobors.no/ob_eng/
The following bonds now feature on the list:
|Issuer||Bond||Outstanding (NOK million)|
|BKK||BKK AS 14/21 FRN||2.000|
|NTE||Nord-Trøndelag Elektrisitet AS 14/17 FRN||250|
|NTE||Nord-Trøndelag Elektrisitet AS 14/19 FRN||400|
|NTE||Nord-Trøndelag Elektrisitet AS 14/21 FRN||100|
|Vardar||Vardar AS 14/19 FRN||300|