Nordea to act as advisor to Dutch government on green-bond issue

Nordea celebrates as Dutch State Treasury awards Nordic bank key advisory role for inaugural, AAA-rated green bond.

Looking forward: We’ve all got a stake in this. Photo: Matt Anderson Photography/gettyimages

The Dutch State Treasury Agency Friday said it will issue its first green government bond in 2019, and that it has chosen Nordea as one of its advisors.

The Dutch State joins a select band of governments that have decided to allocate part of their own government bond to specifically targeting green investments in their country as part of an environment-friendly approach.

“The advisors of the Dutch Direct Auctions are selected based on their primary dealer ranking of 2018,” the DSTA said in a statement on December 14. “Expertise, experience and distributional capacities with regards to green bond issuances is also taken into consideration for the selection of the green bond advisors.”

The 10-year bond is also expected to be the first AAA-rated sovereign green bond.

“At Nordea we are obviously very honoured to be selected as advisor to this transaction, as we share the same goals towards a cleaner planet illustrated by the amount of resources that our bank has allocated to this area,” said head of global rates, Fredrik Floric. “We’ve made a big push on ESG in 2018 which was recognised this month in the Prospera awards and being chosen by the DSTA fits well with this drive to highlight the importance of incubating investment in the green economy.”

“This is not just a trend,” he said. “This is becoming a necessity and it’s important to be recognised as a leader in this sphere.”

Nordea was selected as a primary dealer to the DSTA two years ago becoming part of its official dealer group before this year being elected as one of five advisors to DSTA’s sole benchmark transaction in 2018, a reward, says Floric, for the bank’s hard work to build the relationship with the DSTA..

“We put together a coordinated approach when we learned that the DSTA was investigating the possibility of issuing green bonds,” said Stockholm-based Floric. “It’s enabled us to position ourselves as a trusted, experienced and competent advisor for DSTA’s inaugural green bond issue.”

”For Nordea’s EUR Rates value-chain as well as for our sustainable bond franchise, this is a clear landmark mandate,” the EUR Rates Board said in a statement.

Other banks chosen to facilitate the upcoming DDA include ABN Amro Bank,HSBC and Credit Agricole. The DDA is expected to take place in the second quarter of 2019.

  • For more information on the Dutch Government Green Bond mandate, contact Fredrik Floric, Head of Global Rate Sales, Nordea

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