The financial sector has a role to play in creating a better environment by providing new funding solutions. For this reason, Danske Bank’s mortgage finance subsidiary today launches its first green mortgage bond, and the Danske Bank Group announces a new framework for its issuance of green loans and bonds.
Realkredit Danmark today offers its first green mortgage bond to the Danish market. The green mort-gage bond is aimed at commercial customers who have a green profile and who seek financing of cli-mate-friendly properties, expected to be properties with an A or a B building energy rating.
“We expect investors who have a green investment mandate to show an interest in the green mortgage bonds, and that we will be able to offer a lower interest rate to our customers,” says Klaus Kristiansen, member of the Executive Board at Realkredit Danmark.
Climate change is one of the greatest threats facing our planet and it poses major environmental, economic and societal risks. Consequently, society needs the financial sector to come up with financial solutions that will help limit global warming.
According to Head of Societal Impact & Sustainability, Jeanette Fangel Løgstrup, Danske Bank wants to increase its share of green loans and bond issues considerably over the coming years. The green mortgage bonds are the first step within Danske Bank’s new so-called Green Bond Framework, which lays down the criteria for the Group’s issuance of green loans and bonds.
“The transition to a sustainable economy with reduced CO2 emissions requires significant investments. We want to help provide more financing for sustainable and environmentally friendly initiatives, which also ties in well with our support of the Paris Agreement and the Sustainable Development Goals launched by the United Nations. We will therefore introduce solutions that will make financing new investments in climate-friendly buildings and technologies easier – or offer loans that will encourage businesses to adopt a more green profile,” says Jeanette Fangel Løgstrup.
Read more about Danske Bank’s Green Bond Framework and our work on corporate responsibility and sustainability at danskebank.com