NIB Environmental Bonds. Not for distribution in the USA

Transcription

1 NIB Environmental Bonds 1 Not for distribution in the USA

2 Environmental Bonds - FOR A SUSTAINABLE Future 2 Not for distribution in the USA

3 NIB Environmental Bond Framework Environment part of NIB's mission and mandate Supporting growing SRI awareness Investor diversification Framework with second opinion from CICERO, compliant with the Green Bond Principles Projects located in member and EU countries Transparent reporting on NIB member of the GBP Executive Committee 3 Not for distribution in the USA

4 NIB Environmental Bonds SIMPLE SET UP Issued under existing Issuance Program Governed by the same legal framework as regular bonds Direct obligations of NIB, no project risk Investing with positive environmental impact 4 Not for distribution in the USA

5 NIB Environmental Bonds PROCESS OVERVIEW Selection process Selection criteria Separation of funds Reporting 5 Not for distribution in the USA

6 Process Overview SELECTION PROCESS The Sustainability & Mandate Unit Assessment of mandate fulfilment of all projects Identifies and preselect the projects by eligibility criteria during the assessment Proposes projects for NEB Credit Committee Decides on eligibility for NEB 6 Not for distribution in the USA

7 Process Overview SELECTION CRITERIA Project located in NIB member or EU country No potentially threatening risk elements High likelihood of achieving the targeted environmental benefits 7 Not for distribution in the USA

8 Process Overview MANDATE RATING Impact Assessment of the potential environmental impact (negative neutral positive) Positive impact is evaluated versus peer group, best available improvement and absolute impact (excellent good moderate marginal) NEB eligibility: excellent and good positive potential impact Risks Realisation risk: probability that potential impact does not materialize (low moderate- high very high) Factors: Technical, ecological, social, governance, legal etc. 8

9 Process Overview SUSTAINABILITY REVIEW Why? Identify and assess reputational and credit risks How? Define project and collect information: Site Visit, Stake holder and project people interviews, quality assurance Benchmarking, Compliance with EU legislation, BAT, IFC Performance Standards, Environmental Impact Assessment, Reporting system Reporting and disclosure What is excluded (Examples)? New base load power plants with an installed capacity above 50 MW (electricity + thermal heat) mainly fuelled with coal or fuels with a similar fossil carbon dioxide intensity. Exclusion of coal, oil, peat, bio-fuels based on raw material feed from food, new medium or large scale hydropower Production or trade in radioactive products 9

10 Process Overview SELECTION CRITERIA - CATEGORIES Energy efficiency Reduction of energy use by min. 30% Renewable energy Wind, solar, tidal and wave, geothermal, biofules and -gas, hydro Transmission Connect renewable energy to the grid Waste water treatment Waste management Public Transport Improved logistics for rail and waterways (mainly based on electricity and biofuel) Green Buildings Commercial and Multi-family buildings certified LEED Platinum or BREEAM Excellent and 25% improvement in energy efficiency (EU green building requirements) 10

11 Process Overview SEPARATION OF FUNDS Short Term Funding NEB Bond Issue Proceeds Green Fund Pool Disbursements NEB eligible loans Treasury Short Term Money Market Placement 11 Not for distribution in the USA

12 Process Overview REPORTING WE PROVIDE TRANSPARENT REPORTING: NIB.INT All projects financed: project description, mandate fulfilment and sustainability report summary NEB financed amount and share of loan, disbursement date and maturity Country and category of project Total CO2 equivalent per annum impact on a portfolio basis NIB participates in IFI's working group on green bond reporting 12

13 NIB ENVIRONMENTAL BONDS Issued amount: EUR 2.1 billion equivalent Outstanding amount: EUR 2.0 billion equivalent Outstanding NEB issues Issue Year Currency Amount in mn. Maturity EUR mn. equivalent 2016 SEK 1,500 7Y EUR 500 8Y SEK 1,000 5Y EUR 500 7Y SEK 1,000 5Y USD 500 7Y EUR 40 5Y BRL 344 5Y SEK 500 5Y SEK Y ZAR 1,006 4Y Not for distribution in the USA

14 NIB ENVIRONMENTAL BONDS Projects financed NEB issues have financed 42 projects for a total of EUR 2.3 billion Projects per Country Finland 26 % Projects by Type Renewable Energy 35% Waste water treatment 17% Sweden 48 % Denmark 6 % Lithuania 2 % Norway 18 % Poland 0 % Energy Efficiency 7% Green Buildings 14% Public Transport 14% Waste management 13% 14 Not for distribution in the USA

15 Process Overview REPORTING: CO2 REDUCTION P.A.* 650,000 t all projects financed by NEB CO2EQ * p.a. reduction calculated on the basis of the participation of NIB in per cent in a project The number is calculated in accordance with new harmonised methodology implemented by IFI's in Jan

16 Helgeland Kraft AS Construction of five hydro power plants in Norway to increase security of supply and new generation capacity by 125 GWh p.a. The plants were designed to adapt well to the surrounding nature. Maturity: 15 years EUR 24mn 16 Not for distribution in the USA

17 Käppalaförbundet A new digester treatment plant in northern Stockholm, Sweden. The new digester will increase the capacity to produce biogas with 50%. The extra capacity will be used to treat external organic waste, the external material will generate 20,800 MWh/a. Maturity: 25 years EUR 10mn 17 Not for distribution in the USA

18 Vasakronan AB Construction of two new office buildings targeting LEED Platinum certification located in Frösunda and Uppsala in Sweden. Maturity: 10 years EUR 48mn 18 Not for distribution in the USA

19 Projects financed with NEB proceeds Customer Country Description City of Helsinki Transport Finland 20Y EUR 60mn for financing the purchase of 40 energyefficient low-floor Artic trams for the city. City of Oslo Norway 25Y NOK 1500mn for expanding the Bekkelaget wastewater treatment plant in Oslo Ekerövatten AB Sweden 10Y SEK 100mn (85% NEB eligible) for financing of investments in the water and wastewater treatment in southern Stockholm City of Bergen Norway 20Y NOK 1000mn for upgrading the wastewater treatment system in Bergen City of Stockholm Sweden 10Y SEK 2000mn for expanding the Henriksdal wastewater treatment plant and constructing a sewer tunnel under Stockholm Vasakronan Sweden 10Y SEK 445mn for financing the Frösunda and Uppsala LEED Platinum construction projects Ängelholms kommun Sweden 15Y SEK 100mn for financing of investments to improve wastewater treatment in Ängelholm Helgeland Kraft AS Norway 15Y NOK 470mn (89% NEB eligible) for financing of five new hydropower plants 19 Not for distribution in the USA

20 Projects financed with NEB proceeds Customer Country Description Käppalaförbundet Sweden 25Y SEK 151mn (60% NEB eligible) for financing investments in a new digester treatment plant in Northern Stockholm City of Mikkeli Finland 25Y EUR 5mn for financing of a new wastewater treatment plant in City of Mikkeli Stockholm County Council Sweden 10Y SEK 1000mn for acquisition of 48 new metro trains and a new traffic operation system for Stockholm's metro system Republic of Lithuania Lithuania 20Y EUR 30mn for renovation of public buildings and apartments, reducing the heat use (Public Sector Energy Efficiency Project and Housing Renovation Program) Elkem AS Norway 13Y EUR 40 mn (47% NEB eligible) for financing the rebuilding of three of its electric arc furnaces Fastighets AB ML 4 Sweden 24Y SEK 1.5bn for financing the construction of the MAZ IV synchrotron radiation research laboratory as part of Lund University in Sweden (BREEM Excellent) SJ AB Sweden 10Y SEK 770mn for modernisation of X2000 trains in Sweden 20 Not for distribution in the USA

21 Projects financed with NEB proceeds Customer Country Description City of Vantaa Finland 20Y EUR 52mn construction of commuter train track Akershus Energi Norway 10Y NOK 100mn, for the replacement of two turbines increasing the annual production of electricity by 12% in an already regulated waterway (additional drawing under existing project) Vantaan Energia Finland 19Y EUR 64mn, construction of the first waste to energy plant in the Helsinki Metropolitan Area Lyse Norway 15Y EUR 113mn, replacement of existing hydro power plant Energa Poland 11Y PLN 67.5mn financing a new wind farm in north western Poland For more projects please visit: 21 Not for distribution in the USA

22 Process Overview REPORTING Framework Second opinion All policies All issued NIB Environmental Bonds and financed projects CO2eq p.a. impact on portfolio basis 22 Not for distribution in the USA

23 FUNDING & INVESTOR RELATIONS Jens Hellerup Senior Director Head of Funding & Investor Relations Tel jens.hellerup@nib.int Angela Brusas Senior Funding Manager Funding & Investor Relations Tel angela.brusas@nib.int Alexander Ruf Senior Funding Manager Funding & Investor Relations Tel alexander.ruf@nib.int Nordic Investment 23 Not for distribution in the USA