Use of proceeds

KommuneKredit aims to contribute to financial latitude in Danish municipalities and regions by offering financing and financial services at the lowest possible costs. We offer our members access to financing for projects with equal opportunities and terms for all - across the entire country. This we do by offering loans and lease agreements for investments within 16 categories.

Loans and leases for many public purposes

Our loans and leases finance many different types of local projects in Danish society, including investments in green and social projects. Investments are made on the basis of democratic decisions in city and regional councils – regardless of the size of the project or where in Denmark it takes place.

The list of investments we have helped finance over the years is long and spans everything from green projects such as investments in energy-efficient district heating, climate proofing and coastal protection, energy-saving initiatives and clean transportation to social purposes such as housing for marginalised people, senior housing, schools, city museums and sports centres.

For more than 125 years, our financing has supported welfare, growth and development at the local level in Denmark, all on a non-profit basis.

We operate within a limited lending universe, where both our customers and the types of investments we can finance are subject to regulation. When we receive a request for financing, we always conduct a specific and individual assessment based on municipal authorization regulations, relevant sector legislation, and EU state aid rules. This we do to ensure that the financing is within our legal and regulatory framework. 

Read the KommuneKredit Act and Articles of Association

The proceeds of our bonds may finance projects in below categories

1. Ports

Municipal infrastructure in ports, marinas, dinghy harbours and recreational harbour facilities.

2. Cultural institutions

Museums, theatres, cultural centres, assembly halls, art cinemas and libraries.

3. Leisure facilities

Sports centres, multi-purpose centres, public swimming pools and certain hostels.

4. Schools

State schools, folk high schools, boarding schools and selv-governing schools.

5. Daycare facilities

Municipal and self-governing daycare facilities.

6. Special-purpose housing

Housing for the elderly, care homes and housing for people with special needs or refugees.

7. Transport

Ferries, railways, metros, parking facilities, buses and vehicles. Loan can be green if the investment supports electri­fi­ca­tion.

8. Healthcare

Healthcare centres, hospitals and hospital equipment, home care services and dental equipment.

9. Emergency services

Fire stations and fire engines, ambulance stations and ambulances as well as other emergency response equipment.

10. Roads, parks and administration

Town halls and other administrative buildings as well as vehicles, machines, equipment etc.

11. Waste collection

Waste collection, recycling centres and transloading stations. Loan can be green if, for example, the investment reduces waste or increases recycling.

12. Heating & energy supply

District heating. Loans can be green if the investment ensures energy-efficiency or production of renewable energy for district heating.

13. Water and wastewater

Drinking water and wastewater projects. Loans can be green if the investment involves piping or installations or concerns precipitation management.

14. Climate adaptation and coastal protection

Coastal protection, dikes and climate adaptation concerning roof and surface water. Loans can be green if the investment improves climate resilience.

15. Energy-saving initiatives

Energy renovation and replacement of street lighting. Loan can be green if the investment funds green buildings.

16. Liquidity

Municipal loans concerning for deferred property taxes.

The examples above are not exhaustive. There may be additional financing opportunities not listed, while some of those mentioned may only be eligible for KommuneKredit financing under certain conditions.

Green use of proceeds

The proceeds from our green bond issuances are earmarked for green loans dedicated to climate and en­viron­men­tal­ly friendly projects.

Explore our green use of proceeds

Projects we have financed

Contact us

If you would like to know more about treasury and sustainable financing in KommuneKredit, please feel free to contact us.

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