At the occasion of the EU Green Week 2021, the EACB puts in the spotlight sustainable measures taken by our co-operative bank members. This the occasion to show once again the strong engagement of the EACB and its members to the green transition.
On this second day of the Eu Green Week, we bring up the measure taken by our Finnish Member, OP Financial Group, who issued the first-ever green covered bond in Finland. This news matches the topic of today's EACB webinar "Applying Taxonomy to Green Mortgages in Co-operative Banks: Challenges and Opportunities".
This green covered bond amounts to 750 million euros and has a maturity of 10 years. The bond is targeted at responsible institutional investors, and proceeds raised with the bond are allocated to OP Financial Group’s home loans that are recognised as green ones according to the Framework. The sector financed is energy-efficient residential buildings (green buildings). The bond was priced on 18 March 2021 and was issued on 25 March 2021.
“By issuing the first green covered bond in Finland, we will meet investors’ increasing demand and foster a sustainable economy according to OP Financial Group’s corporate responsibility programme. Directing financing to environmentally sustainable projects supports the work to mitigate climate change”, says Sanna Eriksson, Managing Director of OP Mortgage Bank.
The green covered bond has attracted great interest among investors: the issuance involved 55 international investors.
OP Mortgage Bank’s Green Covered Bond Framework and the associated independent Second-party Opinion from Sustainalytics as well as Green Covered Bond Investor Presentation are available at op.fi/op-financial-group/debt-investors/green-bonds.
Source: OP Financial Group