Swiss lender GKB issues CHF 100m green bond

Swiss cantonal bank Graubuendner Kantonalbank has made its debut on the green bond market, issuing a CHF-100-million (USD 108.65m/EUR 94.94m) note to finance renewable energy and green building projects.

The bond has a coupon of 0.10% per year and is due on December 7, 2029, Graubuendner Kantonalbank said on Monday. It will be listed on the SIX Swiss Exchange.

The issue comes after the Swiss bank introduced in August a Green Bond Framework. The proceeds raised through this framework will be used for financing projects with a positive contribution to the UN Sustainable Development Goals ‘Affordable and Clean Energy’, ‘Sustainable Cities and Communities’ as well as ‘Climate action’.

In the area of renewable energy, the bank focuses on loans for larger power plants but the financing of small solar, wind and hydropower plants, as well as district heating facilities, could also be in its scope. The lender will finance mortgages for green buildings to support the environmentally friendly development of the construction industry.

(CHF 1 = USD 1.086/EUR 0.949)

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