SID Bank became the first Slovenian issuer to issue green bonds on the international capital market, in the amount of EUR 75 million. SID Bank’s green bonds received an opinion from the internationally recognised firm Sustainalytics, which confirmed in full the bonds’ compliance with the Green Bond Principles of the International Capital Market Association. SID Bank will earmark the green bonds for the financing of green projects and circular economy models, and thus contribute to the achievement of Slovenia’s sustainable development goals. SID Bank is one of the first issuers of green bonds in this part of Europe.
SID Bank issued green bond private placement on the international capital market in the amount of EUR 75 million, the transaction was priced tight at the low end of the price range which was supported by the green labelling. Demand for SID Bank’s bonds totalled EUR 172 million.
In accordance with the Green Bond Principles, SID Bank’s green bonds are intended for green projects in the areas of renewable energy sources, energy efficiency, the prevention and control of pollution, the environmentally sustainable management of living natural resources and the use of land, clean transport, the sustainable management of water and waste water, products adapted for an environmentally efficient and/or circular economy, production technologies/processes, and green construction. In the future, SID Bank will expand the scope of its financing in the aforementioned areas, for which it will also publish an annual assessment of effects on the environment and society.
With the aim of promoting a green or sustainable economy, SID Bank and other development banks in the scope of the European Association of Long-Term Investors (ELTI) signed a special declaration at a summit in Paris (COP21) as a commitment to the transition to a low-carbon economy. As a signatory of the aforementioned declaration, SID Bank welcomes and encourages other market participants to commit to sustainable investments and the development of a green bond market in Slovenia. Through its activities, SID Bank intends to serve as a catalyst in the future for numerous local issuers of and investors in green bonds.
SID Bank is working actively towards changes in existing environmental, economic and social paradigms in light of the holistic and systematic approach set out in the Slovenian Development Strategy 2030. SID Bank thus contributes to the achievement of the UN’s Sustainable Development Goals, to which Slovenia and the other 192 countries committed themselves in September 2015.
The main characteristics of SID Bank’s green bonds are as follows:
-Bond designation: SEDABI 12/12/2023
-Issue size: EUR 75,000,000
-S&P issuer rating: A+
-Coupon rate: 0.50%
-Yield: 0.532% (mid-swap rate + 0.26%)
-Date of issue: 4 December 2018
-Maturity date: 12 December 2023
-Listing: Vienna Stock Exchange (MTF)
-Structure of investors: 46% Slovenian, 54% foreign
-Bid-to-cover ratio: 2.3
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