SBAB launches updated Green Bond Framework

The funds SBAB raises through the issuance of green bonds will be used to finance or refinance residential properties that meet a number of energy-efficiency criteria. The terms for onward lending and the conditions for issuing of green bonds are described in more detail in SBAB’s Green Bond Framework (“SBAB Group Green Bond Framework 2024”) (“the Framework”). The Framework enables SBAB to issue green bonds under SBAB’s EMTN Programme as well as for SCBC to issue green covered bonds under SCBC’s EMTCN Programme.

SBAB strives to be at the forefront when it comes to maintaining best practices in sustainable financing. The Framework is designed to align with recent market developments as well as the implementation of new and upcoming regulations.

“The issues surrounding climate change are one of our time’s greatest challenges and energy efficiency in housing is a pivotal factor in the transition. For example, substantial investments in the existing building stock will be required to reach the energy efficiency requirements proposed in the regulations from the EU, says Karin Stenmar”, Head of Sustainability at SBAB.

The criteria set out in the Framework for identifying and selecting green loans cover both new and existing buildings. Major renovations that lead to a reduction in energy use of at least 30% compared to the pre-investment situation as well as building energy efficiency measures inspired by the EU Taxonomy are also included in the Framework.

Though the issuance of green bonds, SBAB wants to continue to promote the financing of energy-friendly and climate-smart housing. Green investment opportunities are not only of interest for the investor community, but also for SBAB’s customers. The awareness of environmental issues is increasing, as is the demand for additional sustainable financing alternatives.

“The financial sector has an important role to play in facing challenges linked to climate change. By offering green investment opportunities, we manifest our commitment for a more sustainable future while simultaneously make it easier for our customers to make a positive difference to the environment and to future-proof their homes and properties”, says Karin Stenmar.

About SBAB’s green bonds

In 2016, SBAB published its inaugural Green Bonds Framework and shortly thereafter became the first bank in Sweden to issue a green bond. In 2019, SBAB published a new green framework following the introduction of a green residential mortgage offering to its retail customers. Subsequently, in 2019, SBAB became the first bank in Sweden to issue a green covered bond backed by residential mortgages and property loans.

Each year, SBAB publishes the report ("Green Bond Impact Report") which describes the effects the residential properties that SBAB finances with funds from green bonds actually have on the environment in terms of savings in greenhouse gas emissions, expressed in carbon dioxide equivalents, CO2e. Eligible investment objects within SBAB’s Green Bond Framework 2019 at year end 2023 amounted to some SEK 75 billion. At the same date, green bonds outstanding totalled some SEK 42 billion.