Nykredit launches green mortgage loans and bonds

Nykredit issues new, green covered bonds, aiming to make it more attractive to finance energy-efficient buildings.

Nearly 40% of total energy consumption stems from buildings. Nykredit now launches green mortgage loans and bonds aimed at making it more attractive to finance energy-efficient buildings.

"As Denmark's largest loan provider, we are committed to ensuring that our lending activities benefit society as a whole. We hope that this initiative will contribute to reducing the energy consumption of buildings by making it financially more attractive to opt for energy-efficient buildings" said Anders Jensen, Group Managing Director of Nykredit.

As Denmark's largest loan provider, we are committed to ensuring that our lending activities benefit society as a whole.

Anders Jensen, Group Managing Director

The buildings should have an A or a B energy label or similar certificates to be financed using Nykredit's green covered bonds, which will initially be offered solely to Nykredit's corporate clients. We will start issuing green mortgage loans and bonds denominated in DKK and SEK in early May.

"We will be keeping close track on the market and demand from our clients with a view to possibly offering green mortgage loans to more customers. In particular, investors are increasingly interested in green alternatives, but also more borrowers have started to take an interest in this area" said Anders Jensen.

We hope that investors with green investment mandates will find the green covered bonds attractive, and consequently that Nykredit will be able to offer a lower green loan rate to our customers. However, it is too early to determine whether they will obtain lower rates, as this depends on the market.

For more details on  Nykredit's Green Bond Framework please read here.