Major milestone for mortgage loans

Realkredit Danmark, part of the Danske Bank Group, has reached a major sustainable-financing milestone. Green mortgage bonds targeted at corporate customers have been assigned the highest liquidity classification – level 1.

As of 30 June 2020, Realkredit Danmark’s green mortgage bond lending has reached a volume of DKK 4.6 billion.

This means that the volume has exceeded the limit of EUR 500 million, bringing this lending into the bond major-league with the same high classification as bonds used for traditional mortgage loans. 


Interest has increased significantly
“We’ve received a very positive response from many of our corporate customers who are focusing on sustainable transition and who at the same time want to support the creation of a financial infrastructure that can provide attractive financing for the future energy renovation of existing buildings. Over the past six months in particular, the interest in green financing has increased significantly,” says Carsten Nøddebo, CEO of Realkredit Danmark.


We’ve received a very positive response from many of our corporate customers who are focusing on sustainable transition. Over the past six months in particular, the interest in green financing has increased significantly.

Carsten Nøddebo

CEO, Realkredit Danmark



In April 2019, Realkredit Danmark was the first Danish mortgage credit institution to launch green funding through its issuance of green bonds in the Danish market. The green mortgage loan – RD Cibor6 ® Green – is offered to corporate customers. One of the prerequisites for obtaining the mortgage is that the property has a building energy rating (BER certification) of A or B. 

Companies represent a broad cross section 

The companies that have so far raised mortgages through green mortgage bonds to finance property projects represent a broad cross section of businesses and geographical locations, and loans in green mortgage bonds have been issued across all regions of Denmark. The companies also represent a range of different industries, including energy and utility companies, educational institutions and property companies.

“Initially, we have focused on the largest companies in order to get the market for sustainable financing off the ground. Not only do companies see green financing as a key priority in their green transition, but they also gain an economic advantage.

The green mortgage loans are slightly cheaper than that for traditional mortgage loans. This is because investors are willing to pay a slightly higher price for green bonds – and for borrowers this means a lower interest rate on the loan. Having now achieved the highest classification, the liquidity of our green bonds will be so high that future borrowers will have an even better green alternative to traditional financing,” explains Carsten Nøddebo. 


Part of our 2023-plan

Realkredit Danmark’s commitment to green loans is part of the Danske Bank Group’s ambition to provide sustainable financing of DKK 100 billion by 2023.  Sustainable financing may consist of

  • financing sustainable property
  • Danske Bank helping companies, financial institutions and governments to issue green bonds that enable financing for sustainable projects
  • green loans for customers who are working with green initiatives or loans for projects that reduce CO2 emissions, for example


In the first part of 2020, financing for sustainable building projects in particular has accelerated. In addition to the new milestone for green bonds, Danske Bank has also recently granted the first green construction loan for the construction of 280 sustainable subsidised-housing units in Svendborg, Denmark. Furthermore, Realkredit Danmark has just launched green mortgage loans in Sweden targeted at large property investors.