SEB’s green financing to reach businesses in the Baltics
The Green Bond concept was developed in 2008 by SEB and the World Bank as a response to increased investor demand for engagement in climate-related opportunities. SEB issued its own first Green Bond, in the amount of EUR 500 million, in 2017. SEB is now looking to invest the proceeds from Green Bond investments into the Baltic Republics, in order to offer Estonian, Latvian and Lithuanian businesses the opportunity to apply for loans for their green projects.
“A Green Loan can be applied for in order to support projects that help improve climate change, the environment and the ecosystem. The SEB Group will continue to issue Green Bonds, although Green Loans are also available in all three Baltic countries, for example, for the financing of renewable energy projects. Initially we will be offering Green Loan products to large companies”, explained Artjom Sokolov, Head of Corporate Banking at SEB.
When issuing a Green Loan, each project will be assessed individually, to make sure that it meets the Green Bond criteria; i.e. the project seeking a loan should be a low-carbon project, which supports environmental and ecosystem improvements as determined by the SEB Green Bond Framework.
SEB’s goal is to remain a leader in the field of greener investments and to continue to support its clients in implementing more sustainable and environmentally friendly projects. The support of green investments made to date resulted in an approximate reduction of CO2 emissions in the amount of 229,925 tonnes in 2019.
About half of the SEB Group Green Loan Portfolio consists of renewable energy projects, with the remainder comprised of the financing of green buildings, transportation and energy efficiency projects. Right now, Sweden accounts for 46 per cent of the Portfolio’s investments, followed by Finland, Norway, the United Kingdom, and Germany.
SEB finds that the banking sector has an important responsibility when it comes to establishing a more sustainable business environment, since it is through our financing, investments and clients that we are able to directly impact the future we are contributing to and the type of business we are promoting. Through green financing, we are contributing to a low-carbon business-model and sustainability, because the choices we make today are what define our opportunities for tomorrow.
Corporates and Institutions Area