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International Internet Magazine. Baltic States news & analytics Saturday, 23.10.2021, 19:50

SEB starts offering green loans to Baltic companies

BC, Riga/Vilnius/Tallinn, 14.10.2020.Print version
SEB will from now on direct cash raised through the issuance of green bonds also to the Baltic countries, enabling businesses in Estonia, Latvia and Lithuania to seek financing for green projects, informs LETA/BNS.

"Green loans can be sought for projects which confront climate change and have a favorable impact on the environment. While the issuance of green bonds will continue to be done by SEB Group, from now on it is possible to apply for a green loan also in the Baltic countries, such as for the financing of projects in renewable energy," Artjom Sokolov, head of corporate banking at SEB Estonia, said in a press release.

He said that for the time being, green loans are offered to large companies.

Projects eligible for financing must be with low carbon dioxide emissions and help improve the condition of the environment in accordance with the SEB green bond framework.

Approximately half of the green lending portfolio of SEB Group is made up of projects in renewable energy, while the rest are about the financing of projects in environmentally sustainable buildings, transport, and energy efficiency. At present, investments in Sweden account for 46 percent of the portfolio, followed by Finland, Norway, the UK and Germany. 

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. It is an investment vehicle that integrates the fiduciary element of fixed income products with climate mitigation and adaptation awareness, giving mainstream investors access to climate-related investment opportunities. SEB Group issued its first Green Bond, worth EUR 500 million, in 2017. 

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