Green bonds

MuniFin’s Green Bond Framework has four project categories:

1. Buildings
2. Transportation
3. Renewable energy
4. Water and waste water management

Cicero Shades of Green has carried out a second party opinion on our Green Bond Framework.

MuniFin has been offering its customers green finance for investments that are friendly for the climate and environment since 2016. We offer green finance to select projects that promote the transition to low-carbon and climate-resilient growth. These projects contribute to climate change mitigation and adaptation.

All the green projects that we finance are located in Finland. To make climate and environmentally friendly investments more attractive to our customers, we grant approved green finance projects a margin discount of 0–15 basis points. The discount is based on the project’s estimated environmental benefits and the extent of its sustainability considerations in both design and implementation. MuniFin’s Green Finance Team (GFT) assesses and scores the projects. The greener the project, the larger the discount.

Projects eligible for our green finance must meet the requirements of our Green Bond Framework. Our GFT reviews the applications and approves eligible projects. The GFT consists of experts from our Customer Solutions division and Capital Markets and Sustainability division. The process must involve at least two GFT members.

We source the funding for our green finance by issuing green and social bonds. We issued our inaugural green bond in 2016 and have since issued green bonds in EUR, USD, AUD and GBP. Our goal is to issue at least one green bond per year.

We publish an annual green impact report to provide investors with more detailed information about our green finance projects and their impacts.