nib environmental bonds - seb norge · transparent reporting on ... nib environmental bonds simple...

1

NIB Environmental Bonds

Not for distribution in the USA

2

Environmental Bonds -

FOR A SUSTAINABLE

Future Not for distribution in the USA

Environment part of NIB's mission and mandate

Supporting growing SRI awareness Investor diversification Framework with second opinion from

CICERO, compliant with the Green Bond Principles

Projects located in member and EU countries

Transparent reporting on www.nib.int NIB member of the GBP Executive

Committee

3 Not for distribution in the USA

NIB Environmental Bond Framework

Issued under existing Issuance Program

Governed by the same legal framework as regular bonds

Direct obligations of NIB, no project risk

Investing with positive environmental impact


NIB Environmental Bonds SIMPLE SET UP

5

Selection process

Selection criteria

Separation of funds

Reporting


NIB Environmental Bonds PROCESS OVERVIEW

The Sustainability & Mandate Unit Assessment of mandate fulfilment of all projects Identifies and preselect the projects by eligibility criteria

during the assessment Proposes projects for NEB


Process Overview SELECTION PROCESS

Credit Committee Decides on eligibility for NEB

Project located in NIB member or EU country

No potentially threatening risk elements

High likelihood of achieving the targeted environmental benefits


Process Overview SELECTION CRITERIA

8

Process Overview MANDATE RATING

Assessment of the potential environmental impact (negative – neutral – positive)

Positive impact is evaluated versus peer group, best available improvement and absolute impact (excellent – good – moderate – marginal)

NEB eligibility: excellent and good positive potential impact

Realisation risk: probability that potential impact

does not materialize (low – moderate- high – very high)

Factors: Technical, ecological, social, governance, legal etc.

Impact Risks

Process Overview SUSTAINABILITY REVIEW

9

Why? Identify and assess reputational and credit risks

How? Define project and collect information: Site Visit, Stake holder and project people interviews, quality assurance

Benchmarking, Compliance with EU legislation, BAT, IFC Performance Standards, Environmental Impact Assessment, Reporting system

Reporting and disclosure

What is excluded (Examples)? New base load power plants with an installed capacity above 50 MW (electricity + thermal heat) mainly fuelled with coal or fuels with a similar fossil carbon dioxide intensity. Exclusion of coal, oil, peat, bio-fuels based on raw material feed from food, new medium or large scale hydropower

Production or trade in radioactive products

10

Energy efficiency Reduction of energy use by min. 30%

Renewable energy Wind, solar, tidal and wave, geothermal, biofules and -gas, hydro

Public Transport Improved logistics for rail and waterways (mainly based on electricity and biofuel)

Waste management

Waste water treatment

Green Buildings Commercial and Multi-family buildings certified LEED Platinum or BREEAM Excellent and 25% improvement in energy efficiency (EU green building requirements)

Transmission Connect renewable energy to the grid

Process Overview SELECTION CRITERIA - CATEGORIES

Treasury

11

Proceeds Disburse-ments


Process Overview SEPARATION OF FUNDS

Short Term Funding

Green Fund Pool

NEB eligible loans

Short Term Money Market

Placement

NEB Bond Issue

12

Process Overview REPORTING

All projects financed: project description, mandate fulfilment and sustainability report summary

NEB financed amount and share of loan, disbursement date and maturity

Country and category of project

Total CO2 equivalent per annum impact on a portfolio basis

NIB participates in IFI's working group on green bond reporting

WE PROVIDE TRANSPARENT REPORTING: NIB.INT

NIB ENVIRONMENTAL BONDS Issued amount: EUR 2.1 billion equivalent Outstanding amount: EUR 2.0 billion equivalent


Outstanding NEB issues Issue Year Currency Amount in mn. Maturity EUR mn. equivalent

2016 SEK 1,500 7Y 157

2016 EUR 500 8Y 500

2016 SEK 1,000 5Y 107

2015 EUR 500 7Y 500

2015 SEK 1,000 5Y 107

2014 USD 500 7Y 397

2014 EUR 40 5Y 40

2013 BRL 344 5Y 105

2013 SEK 500 5Y 58

2012 SEK 500 20Y 59

2011 ZAR 1,006 4Y 92

Sweden 48 %

Finland 26 %

Norway 18 %

Denmark 6 %

Poland 0 %

Lithuania 2 %

Projects per Country

NIB ENVIRONMENTAL BONDS Projects financed


NEB issues have financed 42 projects for a total of EUR 2.3 billion

Energy Efficiency

7%

Renewable Energy

35%

Waste water treatment

17%

Waste management

13%

Public Transport

14% Green Buildings

14%

Projects by Type

CO2EQ 15

650,000 t all projects financed by NEB

* p.a. reduction calculated on the basis of the participation of NIB in per cent in a project The number is calculated in accordance with new harmonised methodology implemented by IFI's in Jan 2016

Process Overview REPORTING: CO2 REDUCTION P.A.*

Helgeland Kraft AS

Construction of five hydro power plants in Norway to increase security of supply and new generation capacity by 125 GWh p.a. The plants were designed to adapt well to the surrounding nature.

Maturity: 15 years

EUR 24mn


16

Käppalaförbundet A new digester treatment plant in northern Stockholm, Sweden. The new digester will increase the capacity to produce biogas with 50%. The extra capacity will be used to treat external organic waste, the external material will generate 20,800 MWh/a.

Maturity: 25 years

EUR 10mn


17

Vasakronan AB

Construction of two new office buildings targeting LEED Platinum certification located in Frösunda and Uppsala in Sweden.

Maturity: 10 years

EUR 48mn


18

Projects financed with NEB proceeds


Customer Country Description City of Helsinki Transport

Finland 20Y EUR 60mn for financing the purchase of 40 energy-efficient low-floor Artic trams for the city.

City of Oslo Norway 25Y NOK 1500mn for expanding the Bekkelaget wastewater treatment plant in Oslo

Ekerövatten AB

Sweden

10Y SEK 100mn (85% NEB eligible) for financing of investments in the water and wastewater treatment in southern Stockholm

City of Bergen Norway 20Y NOK 1000mn for upgrading the wastewater treatment system in Bergen

City of Stockholm Sweden 10Y SEK 2000mn for expanding the Henriksdal wastewater treatment plant and constructing a sewer tunnel under Stockholm

Vasakronan Sweden 10Y SEK 445mn for financing the Frösunda and Uppsala LEED Platinum construction projects

Ängelholms kommun Sweden 15Y SEK 100mn for financing of investments to improve wastewater treatment in Ängelholm

Helgeland Kraft AS Norway 15Y NOK 470mn (89% NEB eligible) for financing of five new hydropower plants



Customer Country Description Käppalaförbundet Sweden 25Y SEK 151mn (60% NEB eligible) for financing

investments in a new digester treatment plant in Northern Stockholm

City of Mikkeli Finland 25Y EUR 5mn for financing of a new wastewater treatment plant in City of Mikkeli

Stockholm County Council

Sweden 10Y SEK 1000mn for acquisition of 48 new metro trains and a new traffic operation system for Stockholm's metro system

Republic of Lithuania Lithuania 20Y EUR 30mn for renovation of public buildings and apartments, reducing the heat use (Public Sector Energy Efficiency Project and Housing Renovation Program)

Elkem AS Norway 13Y EUR 40 mn (47% NEB eligible) for financing the rebuilding of three of its electric arc furnaces

Fastighets AB ML 4 Sweden 24Y SEK 1.5bn for financing the construction of the MAZ IV synchrotron radiation research laboratory as part of Lund University in Sweden (BREEM Excellent)

SJ AB Sweden 10Y SEK 770mn for modernisation of X2000 trains in Sweden


21

Customer Country Description City of Vantaa Finland 20Y EUR 52mn construction of commuter train track

Akershus Energi Norway 10Y NOK 100mn, for the replacement of two turbines increasing the annual production of electricity by 12% in an already regulated waterway (additional drawing under existing project)

Vantaan Energia Finland 19Y EUR 64mn, construction of the first waste to energy plant in the Helsinki Metropolitan Area

Lyse Norway 15Y EUR 113mn, replacement of existing hydro power plant

Energa Poland 11Y PLN 67.5mn financing a new wind farm in north western Poland

For more projects please visit: http://www.nib.int/capital_markets/environmental_bonds/neb_transactions_and_projects


Framework Second opinion All policies All issued NIB Environmental

Bonds and financed projects CO2eq p.a. impact on portfolio

basis

www.nib.int 22 Not for distribution in the USA

Process Overview REPORTING

FUNDING & INVESTOR RELATIONS

Jens Hellerup Senior Director Head of Funding & Investor Relations Tel +358 9 61811401 [email protected]

Alexander Ruf Senior Funding Manager Funding & Investor Relations Tel +358 9 61811402 [email protected]

23

Angela Brusas Senior Funding Manager Funding & Investor Relations Tel +358 9 61811403 [email protected]

Nordic Investment Bank www.nib.int/capital_markets/environmental_bond


@nib

nib environmental bonds - seb norge · transparent reporting on ... nib environmental bonds simple...

Documents