Kommunalbanken Norway

SECTOR Agency
RATINGS  AAA/Aaa
RATING OUTLOOK Both stable
FUNDING VOLUME 2021/2022 

US$11.1BN/US$10BN
RISK WEIGHT  20%
REPO ELIGIBILITY 

Norges, US Fed, SNB, RBNZ, RBA
About Kommunalbanken Norway

Kommunalbanken Norway (KBN) was established by a Norwegian act of parliament in 1926 and is wholly government-owned. KBN has a public policy mandate to provide low-cost funding to the localgovernment sector.

Due to large accumulated budget surpluses, currently more than 300% of GDP, the Kingdom of Norway does not issue any foreign-currency debt. KBN is the closest proxy to Norwegian sovereign debt available in the international capital market. As a result, KBN offers investors a unique opportunity to gain exposure to the Norwegian public sector and one of the wealthiest economies globally.

Sustainable funding strategy

In 2010, KBN launched its green-loan product, a reducedrate loan for investments in the Norwegian local-government sector that contribute to solving the climate challenges of the future. The government wants KBN to be a driving force in the development of the market for green financing in Norway.

In 2013, KBN was one of the first European SSA issuers to launch a public US dollar green bond. Since then, demand for green loans has risen dramatically, mirroring the increased interest for green bonds. At year-end 2021, KBN had around US$3.6 billion outstanding in green loans and approximately US$2.9 billion outstanding in green bonds. KBN has issued green bonds in USD, NOK, SEK, AUD and CAD.

KBN’s strategy for green bond issuance is to focus on various global markets where there is a clear environmental, social and governance focus from investors.

GSS BOND PROGRAMME Green Bond Programme
SUSTAINABILITY OBJECTIVE OF GSS BOND PROGRAMME
Through its green bonds and green framework, KBN supports Norwegian local-government investments targeting climate-change mitigation and adaptation, and other environmental management. Green loans are given a discounted interest rate and are meant as an incentive for sustainable investments in the local-government sector.
REFERENCE TAXONOMY FOR THE USE OF PROCEEDS
Green Bond Principles and own categories based on Nordic Public Sector Issuers Position Paper on Green Bond Impact Reporting. Project categories are buildings, renewable energy, transportation, waste management, water and wastewater management, land use and area projects, and climate-change adaptation.
FRAMEWORK WITH WHICH THE GSS BOND PROGRAMME IS ALIGNED Green Bond Principles
EXTERNAL REVIEW PROVIDER  CICERO Shades of Green (framework: medium green, 2021)

PUBLIC ISSUER ESG RATINGS/SCORES

INSTITUTION RATING/SCORE
ISS-ESG C+ (2021)
Sustainalytics 11.4/100 (low risk (February 2021)
MSCI AA (May 2021)
CDP C: Climate change (2021); B: Supplier engagement (2021
FOR FURTHER INFORMATION PLEASE CONTACT:

Thomas Møller
Head of Funding and Investor Relations
+47 2150 2041 
This email address is being protected from spambots. You need JavaScript enabled to view it. 
www.kbn.com