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Danske Bank in global top ten for green bonds

With three months still remaining of 2021, Danske Bank has beaten its own record and helped customers with no less than 100 sustainable bond issuances this year. Danske Bank now holds ninth place in the global rankings for green bonds.

DKK 63bn – that was how much Danske Bank’s total issuances of sustainable bonds recently reached when its 100th bond issuance was completed. Around 90% of issuances were for financing green projects. Customer appetite for green bonds has increased noticeably – they want to secure financing that supports the sustainable transition.

Photo: A green bond is a bond, restricted to finance projects that promote sustainable environment and climate development - for example, renewable energy investments.

Head of DCM Sustainable Bonds, Lars Mac Key, is pleased that the number of new issuances has grown more quickly than anyone predicted at the start of the year:

“Issuance has increased at a faster pace than any of us in the industry could have foreseen. We are seeing a lot more of all types of sustainable bonds, with green bonds in particular experiencing persistently high demand,” he says.

Ahead of international behemoths
Danske Bank currently holds 9th place in the world for green bond issuance (according to the Bloomberg Global League Table) and is ahead of both Nordic competitors and international behemoths like Goldman Sachs, Morgan Stanley, Natwest and Société Générale.

Photo: Head of DCM Sustainable Bonds, Danske Bank, Lars Mac Key.

However, that picture can quickly change and the competition is intense, notes Lars Mac Key:

“Just one or two major issuances could alter the picture drastically. We would have to arrange rather a lot of our more modest Nordic issuances to match the international giants that arrange bonds issuances in the EUR 10bn class,” he says.

He explains that all Nordic markets are experiencing a rising interest in the area, where Sweden is the frontrunner. So far this year, 42% of all corporate bonds in SEK have been issued as sustainable bonds.

Terminology explained

  • Green bonds – to finance green projects
  • Social bonds – to finance social projects
  • Sustainability bonds – to finance a combination of green and social projects
  • Sustainability-related bonds – to finance a strategy (the company is aiming to achieve a particular UN sustainable development goal)
  • Sustainable bonds – the overall term for all bonds in the family. 

More about our work on sustainable financing