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Finland's first ever green bond celebrated at the London Stock Exchange ​ - Embassy of Finland, London : Team Finland

EMBASSY OF FINLAND, London

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News, 04/10/2016

Finland's first ever green bond celebrated at the London Stock Exchange

The London Stock Exchange celebrated Finnish environmental investments in its market opening ceremony on Tuesday. The municipality sector plays a key role in the fight against climate change: its investments are often large-scale and have a wide social impact. Finland's first ever green bond, issued by MuniFin at the end of September, adds to environmentally friendly investment, since green lending is less expensive for customers than other types of lending.

Photo: MuniFin
Finland's first ever green bond, i.e. a bond earmarked for environmental investments, was launched at the end of September. The bond attracted a great deal of interest already in advance and was oversubscribed within a few hours.
Finland's first ever green bond, i.e. a bond earmarked for environmental investments, was launched at the end of September. The bond attracted a great deal of interest already in advance and was oversubscribed within a few hours.

On the bond's value date, Tuesday 4th October 2016, the London Stock Exchange celebrated Finland's first green bond in a market opening ceremony, which was attended by representatives from Finnish municipal customers, the Ministry of the Environment, the Finnish embassy, joint lead manager banks and MuniFin. The bond is quoted on the London Stock Exchange.

"MuniFin's lending portfolio largely focuses on investments that can be described as socially or environmentally responsible. However, for the first time we can now earmark the activities funded by investors and tell them what is being achieved with their investments, says Pekka Averio, President and CEO of MuniFin, describing the significance of the Green Bond.

Wide range of environmental initiatives: from Länsimetro to school buildings

MuniFin's framework for green financing specifies the sectors of environmental investment that are eligible for the more affordable green funding. The categories included are renewable energy, public transport, sustainable buildings, water and waste water management, energy efficiency, waste treatment, and environmental management and conservation.

When we look at the projects funded so far, Länsimetro has received the most funding. Looking at the number of projects, most of them are related to sustainable construction and energy efficiency. A lion's share of sustainable building investments are related to school buildings. 

An internationally rare feature in the assessment of MuniFin's green funding is the fact that the projects' suitability for the green funding framework is assessed by a group of external specialists. The total value of the green projects funded so far is approximately 400 million euros; in addition, several other investments are being considered for funding.

Read more: 
MuniFin - Municipality Finance 

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Updated 12/10/2016


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