Climate change: World Bank re-enters the Danish green bond market


The World Bank has re-entered the Danish green bond market by issuing a 20-year DKK 3 billion ($441 million) green bond.

The last time the World Bank had issued a green bond in Denmark was in 1997. The bond was the institution’s first and the longest maturity green bond issued by a sovereign/supranational/agency issuer in the green bond market.

The green bond supports renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy.

George Richardson, Director, Capital Markets, World Bank said: “We are pleased to be back in the Danish market with our first DKK-denominated green bond. Investors are looking to connect their investments to develop solutions that address climate change and other global challenges that make a difference for people around the world. We appreciate the strong support from Danish investors”.

The green bond has been managed by Skandinaviska Enskilda Banken AB.

Christopher Flensborg, Head of Climate and Sustainable Finance, SEB said: “The World Bank has over the last decade established a large number of collaborations with institutional investors to address and support the Sustainable Development Goals – and the World Bank’s Green Bond programme has been a cornerstone to establish the current sustainable market platform. The challenges posed by increased pollution, climate stress, and consumption require cooperation across markets, mandates, and sectors, and this transaction is yet another example of how that can be achieved through the financial markets – now with strong support from Danish asset owners.”

To date, the World Bank has poured up to $13.7 billion in the green bond market, equivalent to 160 green bonds in 22 currencies since 2008.