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

NIB continued to be active in the green bond market in 2016. During the year, the Bank issued NEBs equivalent to a total of EUR 763 million under its environmental bond framework.

In January, NIB issued a five-year, SEK 1,000 million environmental bond, followed by an eight-year, EUR 500 million environmental bond in June. A seven-year, SEK 1,500 million issue took place in September.

Since the implementation of its NIB Environmental Bond framework in 2011, the Bank has issued a total of EUR 2.1 billion worth of NEBs. By year-end 2016, the Bank had identified 45 eligible projects.

Projects financed by NEBs 2012–2016

as of 31 Dec 2016
%, projects by country

Projects financed by NEBs 2012–2016

Projects financed by NEBs 2012–2016

as of 31 Dec 2016
%, projects by type

Projects financed by NEBs 2012–2016

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

In line with market practice, NIB publishes the figure for the cumulative CO2 equivalent impact of all projects financed by NIB Environmental Bonds. At year-end 2016, the CO2 equivalent impact was calculated as 740,000 tonnes.

The number is calculated in accordance with the new harmonised methodology implemented by IFIs in January 2016. NIB is part of the working group developing the impact reporting.

Cumulative CO2 impact of projects under NEB*

Reduction in CO2 emission (t/a)

Cumulative CO<sub>2</sub> impact of projects under NEB*

The Bank’s commitment to the green bond market was recognised with NIB being elected a member of the Green Bond Principles’ Executive Committee. The Bank was also invited to be an observer to the European Commission’s High-Level Expert Group on Sustainable Finance.

In addition, the Bank joined the European Association of Long-Term Investors’ declaration for COP21, stating their commitment to contributing to the transition towards a low-carbon economy.

It is important to the Bank to show our investors the actual outcome of their investment decisions. NIB therefore invited investors in its environmental bonds to visit some of the projects they have helped finance in Finland. Read more about the project visit.

NIB is actively participating in and developing the Nordic green bond market by also investing in green bonds, as part of the Bank’s lending operations. NIB started cooperation with seven green bond arranging banks whose environmental processes align with that of NIB.

This allows for better cooperation and, when time for pre-evaluation is limited, for NIB to trust to buy a green bond and assess it afterwards. You can read more about Lending’s green bond purchases here.

The Bank will continue to issue and invest in environmental bonds over the coming years. NIB will also contribute to further developing the market by actively taking part in different working groups engaged in the field.