February 13, 2017 / 11:26 AM / 3 years ago

Swedish bank SEB issues first green bond raising $532 million

A woman walks past a SEB bank sign at the main office of the bank in Riga July 9, 2009. REUTERS/Ints Kalnins

LONDON (Reuters) - Swedish banking group SEB issued its first green bond last week, raising 500 million euros ($532 million) for loans to low-carbon projects, it said on Monday.

Green bonds are debt instruments to raise funds for projects such as renewable energy, energy efficiency and low-carbon transport.

The market was worth around $93 billion last year and is expected to grow further in the coming years. Ratings agency Moody’s expects it to more than double in value this year, while others say growth could be slower.

SEB has so far arranged the issuance of a total of $13.8 billion of green bonds for other players in the market but issued its own green bond for the first time on Feb. 10, it said in a statement.

The money raised from the bond will be for green loans which will initially be offered to large companies and institutions, municipalities, county councils and housing associations, SEB added.

Reporting by Nina Chestney; Editing by Adrian Croft

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