Danske Bank to start roadshow for €500 million green bonds Wednesday

By Angela McDaniels

Tacoma, Wash., March 5 – Danske Bank A/S and subsidiary Realkredit Danmark A/S announced plans to price green bonds.

Danske Bank plans to price €500 million of five-year non-preferred senior green bonds, according to a market source.

The bank has mandated ABN Amro, BNP Paribas, Credit Agricole CIB, Danske Bank and ING as joint lead managers for the Regulation S will-not-grow offering, the bank’s inaugural issue of green bonds.

The lead managers will hold a series of fixed-income investor meetings across Europe beginning Wednesday to present the bank’s green bond framework. The new issue will follow, subject to market conditions.

The Copenhagen-based bank expects the notes to be rated Baa2 by Moody’s, BBB+ by S&P and A by Fitch.

FCA/ICMA stabilization applies.

An amount equal to the net proceeds of the green bonds will be used to finance or refinance, in whole or in part, loans or investments located predominantly in the Nordic region and originated by Danske Bank that promote the transition to low-carbon, climate resilient and sustainable economies.

Realkredit Danmark to price

Realkredit Danmark plans to price Danish krone-denominated green mortgage covered bonds called RD Cibor6 Green, according to the subsidiary’s website.

The bonds will mature July 1, 2022. The initial interest rate will be negative 0.28% until July 1, 2019, and the interest rate spread is negative 0.15%.

Proceeds will be used to fund climate-friendly properties.

The issuer, which provides property financing, said it will start issuing loan offers beginning April 15.

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