Green variable-rate mortgage loan
Borrow for energy-efficient business buildings or qualifying improvements when your company has a total financing need of DKK 20 million.
Nykredit pays out this mortgage loan using green bonds. You repay the loan with variable interest linked to Cibor, the short-term Danish money-market interest rate, plus a margin that depends on the underlying bonds’ term. The loan is in Danish kroner, with payment dates on 1 January, 1 April, 1 July and 1 October. Its term can be up to 30 years, depending on the property’s type and use. Interest-only periods are an option.
The loan is refinanced when the underlying bonds mature. The replacement bonds may have a different term. Your property must still meet the green criteria at refinancing; otherwise the loan uses ordinary mortgage bonds. That also happens if Nykredit stops offering green refinancing. Nykredit may change its energy-label and certification requirements.
Early repayment depends on the bonds. Callable bonds can be repaid at face value (price 100) on a payment date, with notice at least two months before that date or refinancing, or by buying and delivering the bonds at market price. Non-callable bonds can be repaid at face value at refinancing, or by buying the bonds at market price.
If Cibor3 interest falls below zero, the interest income reduces your outstanding loan, even during an interest-only period. Your company must pay tax on that income, so its payment after tax is higher at the start, while the loan is repaid faster.
Eligibility
Your company must have a total financing need of DKK 20 million. Nykredit assesses corporate loans for credit approval and environmental, social and governance (ESG) risks, and checks customer identity. The green assets must meet its Green Bond Framework 2023.
For property projects, the qualifying routes include:
- New buildings: primary energy demand, the measure of the building’s energy performance, must be at least 10% below the national nearly zero-energy building requirement.
- Acquisition or ownership: buildings built before 31 December 2020 need energy-performance certificate class A or must be in the best 15% of national or regional buildings by operational primary energy demand. Buildings built after that date must meet the 10%-below requirement at acquisition.
- Renovation: comply with national or regional major-renovation rules implementing Directive 2010/31/EU, or reduce primary energy demand by at least 30%. For the 30% route, renewable-energy contributions do not count as demand reductions; successive measures can achieve the reduction over at most three years.
- Individual building measures: direct material and labour costs can cover insulation, energy-efficient windows or doors, efficient lighting, energy-efficient heating/ventilation/air-conditioning and water-heating systems, and low-water and low-energy kitchen or sanitary fittings. Building renewable-energy measures include solar panels, solar hot-water systems and related equipment, heat pumps contributing to renewable heating/cooling targets, wind turbines, energy storage, high-efficiency micro combined heat and power, and heat recovery. Technical advice, accredited energy audits and energy-management services supporting energy improvements also qualify.
The framework excludes loans mainly for fossil-fuel or nuclear generation, tobacco, gambling, controversial weapons, or environmentally harmful resource extraction. It also excludes loans indirectly for fossil-fuel extraction, storage, transport or manufacturing. Nykredit conducts environmental and social due diligence against applicable standards and laws.
How to apply
- Status
- Open continuously
Call Nykredit customer service on +45 70 10 90 10 to discuss the green Cibor loan. You can also use the contact form linked from the product page. Existing customers can contact their adviser through MitNykredit online banking.