Information for Investors

Sustainable Financing Framework

Building on the success of its Green Bond Program NADBank has made strategic enhancements to broaden its scope by developing a more comprehensive Sustainable Financing Framework. This updated framework focuses on addressing the critical development challenges facing the border region, which are at the core of the Bank’s environmental mandate.

Key components of the framework include targeted financing for initiatives in the areas of water and wastewater management, waste solutions, air quality improvements, urban development, sustainable energy projects, sustainable production, climate resiliency and adaptation activities, access to basic services and reduced exposure to air quality hazards. Each funded project is selected for its potential to deliver substantial environmental benefits and/or to improve access to essential services for the population of the border region. Our robust project evaluation and selection process ensures compliance with environmental and social governance standards and our ongoing commitment to transparency and accountability.

S&P Global Ratings has provided an independent second-party opinion of the framework, affirming its alignment with our sustainability objectives and respected international principles and guidelines for green, social and sustainability bonds and loans

Green Bonds

To date, NADBank has issued three green bonds totaling US$478 million that have been fully allocated to 17 eligible projects. All proceeds of the green bonds are managed and allocated to infrastructure projects in accordance with the Bank’s NADBank Green Bond Framework, which was first developed in 2018 and updated in 2020. The framework is consistent with the rules established in the Green Bond Principles by the International Capital Market Association and received a positive second party opinion. Further details on the NADBank Green Bond Program can be found in the 2023 Green Bond Report.

NADBank issued its first green bond in July 2018 for CHF 125 million maturing in 2026. The net proceeds from this issue, equivalent to US$126 million, were allocated to six renewable energy projects.

In 2020 NADBank issued two additional green bonds: a CHF 180-million bond maturing in 2028 and a CHF 160-million bond maturing in 2033, equivalent to US$186 and US$166 million, respectively. As of December 2023, all the proceeds from these two issues had been allocated to 16 projects.

* Six of the 17 projects received allocations from more than one bond.
** Actual impacts of entire project during first year of operation based on closeout reports, unless otherwise noted.

Renewable energy and energy efficiency made up 91% of the proceeds allocated with US$436 million in total allocations across all three issuances. The remaining 9% was allocated to water-related projects (8%) and a solid waste management project (1%), which came from the issuances maturing in 2028 and 2033.

Project Evaluation and Selection

The NADBank Green Bond Framework identifies eligible projects that may be financed with the proceeds of green bonds. These projects fall into one of four sectors: 

All projects selected for financing must be certified by the NADBank Board of Directors based on technical, financial and environmental criteria, as well as ensure public access to information. As part of the environmental criteria, the projects must demonstrate not only compliance with applicable environmental regulations and clearance processes but must also demonstrate a positive impact on the environment.

Use of proceeds

Green Bond Maturing 2026
CHF125 million, equivalent to US$126 million

All the proceeds of this bond were allocated in 2018 to six renewable energy projects.

*Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
CO₂ – Carbon dioxide in tons per year, GHG – Greenhouse gases.

Green Bond maturing 2028
CHF180 million, equivalent to US$186 million

All the proceeds of this bond were allocated to seven renewable energy projects and one project related to wastewater treatment. The allocation of this issuance spans two years with seven projects receiving funds in 2020 and an eighth project receiving funds in 2021.

* Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
** Estimated impact of entire project at time of approval based on corresponding project certification document.
CO₂ – Carbon dioxide in tons per year, GHG – Greenhouse gases, lps – Liters per second, WWTPs – Wastewater treatment plants

Green Bond Maturing 2033
CHF 160 million, equivalent to US$166 million

The proceeds of this bond were allocated between 2020 and 2023 to a total of nine projects in the areas of renewable energy and energy efficiency, sustainable water management, and pollution prevention and control.  

^* Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
** Estimated impact of entire project at time of approval based on corresponding project certification document.
CO₂ – Carbon dioxide in tons per year; GHG – Greenhouse gases