GPIF and KBN launch initiative to promote Green Bonds

June, 10, 2020

Government Pension Investment Fund (GPIF) and KBN (Kommunalbanken Norway KBN) have recently formed a partnership to promote and develop sustainable capital markets through a focus on Green Bonds, as well as the incorporation of ESG assessments in fixed income investments.

KBN's Green Bonds are issued in alignment with the Green Bond Principles, which are administered by the International Capital Market Association (ICMA). These bonds provide investment opportunities for GPIF asset managers to contribute to make a sustainable society.

<Comment by MIYAZONO Masataka, President of GPIF>
We would like to leverage the success with multinational development banks in green, social and sustainability bonds partnerships in hopes to expand this to other platforms. GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. We are delighted to take part in Norway's 2030 climate goal by investing into KBN' Green Bonds. We believe that Green Bonds are appropriate instrument to support transition to a low carbon economy.

<Comment by Jannicke Trumpy Granquist, Acting President and CEO at KBN>
KBN seeks to help our customers succeed in meeting their environmental objectives. By providing green loans with a lower interest rate we seek to be a driver for more investment in ambitious green projects. As Norway's most active issuer of green bonds, a member of the Executive Committee of the Green Bond Principles and a key contributor to the "Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting" KBN has contributed actively to the development of international standards. This cooperation with GPIF, the world's largest pension fund, will further strengthen our green bond programme and contribute to our mutual mission to build a more sustainable society.

<Link to the Principles and Guidelines for Green, Social and Sustainability Bonds>

<Investment Scheme>