NIB Environmental Bonds

The NIB Environmental Bond framework (NEB) sets out NIB’s criteria for issuing environmental bonds and for identifying eligible lending projects with a positive impact on the environment. A high focus is placed on assessing the potential environmental impact and realisation risk.

Since the Bank’s NIB Environmental Bond framework was introduced in 2011, the Bank has identified 30 eligible loan projects, which have received proceeds from eight environmental bonds.

Projects financed by NEBs 2011-2015

NIB_2015graphs_pie_Projects financed by NEBs 2011-2015 by country

 

Projects financed by NEBs 2011-2015

NIB_2015graphs_pie_Projects financed by NEBs 2011-2015 by type

 

At year-end 2015, the Bank had a total of EUR 1,266 million outstanding in NIB Environmental Bonds. During 2015, NIB issued two NIB Environmental Bonds under its environmental framework, a five-year, SEK 1 billion bond and a seven-year, EUR 500 million bond.

Over the coming years, NIB will continue to issue environmental bonds (NEBs), and the issuance is expected to grow as a share of the total issuance.

In line with market practice, NIB publishes a number for the total CO2 equivalent impact of all projects financed by NIB Environmental Bonds. At year-end 2015, the CO2 equivalent impact was calculated as 330,244 tonnes.

Cumulatice C02 impact of projects under NEB

NIB_2015graphs_line_Cumulative CO2 impact of projects under NEB

 

All NIB Environmental Bonds and eligible projects that have been financed under the framework are published at www.nib.int/capital_markets/environmental_bonds.

NIB is a signatory to the Green Bond Principles. Together with other IFIs, NIB sets out core principles and recommendations for impact reporting in the paper Working Towards a Harmonized Framework for Impact Reporting. During the year, the work amongst IFIs also continued by further developing the International Financial Institution Framework for a Harmonised Approach to Greenhouse Gas Accounting. The Bank also joined the European Association of Long-Term Investors’ declaration for COP21, stating their commitment to contributing to the transition towards a low-carbon economy.