We support our clients with green, social and sustainability bonds, green loans and sustainability-linked loans
Green, social and sustainability bonds
Green and Social Bonds play a key role in the effort to fund projects that provide environmental benefits or support positive social developments. Green Bonds are debt instruments that allow investors to invest in sustainable projects while offering issuers affordable funding to finance these projects.
The proceeds raised through the issuance of Green Bonds are used exclusively for projects that have a positive impact on the environment.
Green loansGreen loans are debt instruments that target initiatives with a clear environmental impact. The proceeds are raised through the issuance of green bonds, which implies that these two debt instruments are closely linked. The use of each loan is carefully examined and evaluated by a group of specialists.
Danske Bank–labelled green loans are aligned with Danske Bank Green Framework and its green categories which promote the transition to low-carbon, climate resilient and sustainable economies.
Sustainability-linked loans are an effective incentive to align financing with the borrower’s strategical sustainability objectives. This is done by tying the debt costs to the company’s sustainability performance. The loan margin is depending on the borrower’s achievement of pre-set sustainability objectives: an improvement in the sustainability performance of the company implies lower rates while missing the target leads to slight increase in the costs.
Unlike green loans that are earmarked for specific green projects, sustainability-linked loans are used for financing general corporate purposes. This enables companies from a variety of sectors to receive sustainable financing and simultaneously encourages borrowers to upgrade their sustainability agenda.