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KommuneKredit launches updated Green Bond Framework

Press release -

KommuneKredit launches updated Green Bond Framework

Today, KommuneKredit launches an updated and strengthened Green Bond Framework. With this Green Bond Framework, KommuneKredit aims to set an even higher standard for its green financing as well as its support of the local green transition in Denmark.

KommuneKredit has high ambitions when it comes to supporting the local green transition of its members through sustainable finance offerings. Since 2017 KommuneKredit has issued a total of more than 2.5 bn EUR in green bonds – funding more than 500 green loans.

KommuneKredit’s Green Bond Framework has been updated to further support the local green transition in Denmark. The framework has been strengthened by

  • sharpening the green loan eligibility criteria,
  • improving the impact reporting methodology,
  • mapping the SDGs to our green loan categories,
  • committing to an external post issuance review of the annual allocation reporting,
  • conducting a taxonomy mapping of the Green Bond Framework 2022.

In connection with the launch of KommuneKredit’s Green Bond Framework 2022 Managing Director and Chairman of KommuneKredit’s Green Bond Committee, Henrik Andersen, says:

“I am very proud of the result that we have accomplished with our updated Green Bond Framework. It emphasizes our high ambitions and our desire to further support the development of a transparent and strong green capital market for the benefit of the green transition”.

He continues: “Not only is our updated framework aligned with the new market standards. With the expansion of the loan categories, more projects can now be financed with green loans from KommuneKredit in support of the green transition in the Danish municipalities and regions”.

Excellent governance score and Medium Green Shading

In line with best market practice, CICERO Shades of Green has assessed the updated framework and provided it with a second party opinion.

CICERO found the framework to be aligned with the Green Bond Principles of ICMA and acknowledged it with an overall Medium Green shading and an Excellent Governance score – the best available governance rating.

More information

Please find KommuneKredit’s Green Bond Framework 2022 and a brief video introduction to the key elements of the new framework here.

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KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.

The association is the municipalities and regions own credit institution and exist solely for our clients.

Contacts

Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

KommuneKredit

KommuneKredit is a Danish special-purpose credit institution, providing funding for the local growth and green transition in municipalities and regions across Denmark.

KommuneKredit is an association with sustainability at its core and a strong ESG profile. Our member base consists of all Danish municipal and regional authorities. Our guarantee structure and safe business model have secured us a premium credit rating (AAA) (Aaa).

That is why we can offer municipalities and regions instant and uncomplicated access to financing of projects large or small and at the lowest possible cost. With equal opportunities and terms for all – across the entire country.

That is how it has been since 1899, when KommuneKredit first disbursed a loan. And that is the way it is today, as our dedicated employees advise on and arrange more than 2,000 loans every year.

When investors buy our bonds, we can disburse loans for purposes ranging from energy renovation of a local sports centre to the purchase of a new eco-friendly hybrid ferry, or the establishment of more sustainable district heating systems across the country.

For the benefit of ordinary citizens, for our local communities, and for an even greener future.

KommuneKredit
Kultorvet 16
DK-1175 Copenhagen K
Denmark
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