New report: Issuers recommend green bonds

Danske Bank has sponsored a new survey from the non-profit organisation Climate Bonds Initiative (CBI), in which 86 issuers of green bonds assess positive and negative aspects of being in the market for green bonds. Their recommendation to other possible future issuers is unmistakable: Go ahead and embrace this growing green bond market!

Danske Bank is a partner with CBI and operates itself as an issuer of green bonds.

Green bonds have gained momentum as an increasing part of the world is working towards ways of operating that significantly reduces carbon emissions. Hence, sustainability requirements are now much more naturally than before integrated completely into the core of business. Offering and issuing green bonds are part of the global effort to strengthen the green transition.


By issuing a green bond, you demonstrate to the market that you’re fully committed to the sustainability agenda. The message this sends also serves to boost your corporate reputation. Green bonds tend to attract new investors who are interested in a long-term investment commitment. 

Lars Mac Key 

Head of DCM Sustainable Bonds, Danske Bank



“By issuing a green bond, you demonstrate to the market that you’re fully committed to the sustainability agenda. The message this sends also serves to boost your corporate reputation. Green bonds tend to attract new investors who are interested in a long-term investment commitment. And for those who still have their doubts about issuing green bonds, the message from the survey from those who have already done so could not be clearer: just do it!”, says Lars Mac Key, Head of DCM Sustainable Bonds at Danske Bank. 

A magnet to investors
The green label appears to act like a magnet to investors regardless of domicile. Due to lack of green bond supply, green bond investors tend to ignore hurdles such as currency and issue size. For this reason, international investors to a local currency green bond issuance is greater than for normal bonds.




Graphic: Danske Bank, Data: Green Bond Treasurer Survey


Moreover, green investors seems more willing to hold on to their bonds rather than selling them. This adds stability to the market, which is attractive to investors.

Time and money offset by the benefits

There are certain expenses associated with issuing a green bond instead of a classic one. It costs time and money to get the blueprint from a second party opinion and once the issuance is completed, extra reporting is required. Nevertheless, these things are fully offset by the benefits of a more committed investor base and the massive interest inherent in green issuing itself these years. 90 per cent. of the issuers indicate that the funding costs were, overall, identical to or lower than a classic bond.

Participants future plans
Looking ahead, 88 per cent. of the participants plan to issue more green bonds.




Graphic: Danske Bank, Data: Green Bond Treasurer Survey


More on Danske Bank and green bonds 

  • Danske Bank operates itself as an issuer of green bonds.
  • So far in 2020, Danske Bank has arranged green bonds worth a total of 30 billion DKK.
  • Over the years, Danske Bank has arranged 137 green bonds at a total value of 193 billion DKK.

Dive into the report

  • Climate Bonds Initiative is a non-profit organization working to promote investment in economies with a minimum of CO2. Danske Bank is a partner with CBI and has sponsored this survey.
  • 86 bond issuers covering both Emerging markets and Developed markets and supranational organizations are included in the survey.
  • Data was collected from May-November 2019 among issuers, which together accounted for 686 green bond issues.
Download report