Green bonds

University essay from KTH/Fastigheter och byggande; KTH/Fastigheter och byggande


The Green Bond market in Sweden is still relatively new and the first companies to issue

these new financial products in Sweden were companies on the real estate market. The


of this thesis is to examine the characteristic that makes a Green Bond different to

other Bonds and to understand why this product is of interest to investors and issuers.

Furthermore we try to estimate the future for this financial product. This descriptive study on

Green Bonds at the real estate market derives from economic theories on capital structure,

Greenwashing, CSR, environmental certification of buildings and interviews with prominent

individuals within this field.

We have limited our field of study to Swedish real estate

companies that have issued Green Bonds to answer the research questions.

A Green Bond does not different from an ordinary Bond,

so what makes this product unique

is the framework that states that the money should be invested in projects that lowers climate

impact. The Swedish real estate companies who have issued Green Bonds recognized a great

demand for their products. One reason behind this great demand among investors is that they

don’t need to give up yield on their investment and at the same time receive positive reactions

from the society when investing in these products. To avoid the risks of Greeenwashing the

invested money must be traceable to projects within the framework. The Norwegian research

institute CICERO plays an important role in assuring that the framework made for the Green

Bods clearly states which projects the money are allowed to be spent on.

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