Swedish krona

Volvofinans Bank is preparing to issue Europe’s second green bond from the automotive sector. While the deal is already attracting interest from investors, its use to finance hybrid and electric cars may not tick the green box for all investors.

Volvofinansbank today announced it would meet investors in Stockholm on Monday May 8 to present a framework for its inaugural green bond. The deal will be one of the few green bonds from the automotive sector.

The City of Gothenburg is to raise debt in the Swedish and Norwegian currencies.

The African Development Bank and FMO took advantage of a maturing Scandinavian SRI investor base this week, printing SRI bonds worth Skr1.25bn ($135.1m) and Skr700m respectively.

The African Development Bank printed a Skr1.25bn ($135.3m) June 2022 green bond on Thursday. AfDB's trade follows FMO's Skr700m seven year sustainability bond that was priced on Tuesday.

FMO has raised Skr700m ($75.4m) with its first sustainability bond in the Swedish currency.

FMO is set to raise a minimum of Skr500m ($54.25m) with a seven year sustainability bond on Tuesday, while KfW plans to bring a dollar green bond.

A pair of Nordic public sector borrowers showed the strength of green bond market, printing a pair of well received trades, both of which were priced inside the issuers’ conventional bond curves.

Kommuninvest issued on Wednesday the largest ever green bond in Swedish kronor. The note offered a negative yield, and was still over 2.6 times subscribed. It was a fantastic example, the leads said, of a strong name issuing in a starved market.

Kommuninvest has selected banks for a bond expected to break the size record for green bonds denominated in Swedish krona.

Kommuninvest is planning to bring the largest ever green bond in Swedish kronor in the third quarter of the year, after debuting in the format with a dollar bond in March.