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Green corporate loans

Arion Bank offers green corporate loans under the Bank’s Green Financing Framework. Companies which meet the criteria for green lending are examined with respect to sustainability and generally pay lower financing costs. More stringent requirements are made in terms of their performance in non-financial areas of the business and they have stricter disclosure requirements for non-financial indicators.

Any type of loan or loan period is eligible as a green loan. Loans can therefore be for investments, inventory financing or business financing in the form of a mortgage deed, loan agreement, revolving credit facility, etc.

If you interested in getting a green loan please contact us at greenfinancing@arionbanki.is.

Under the Green Financing Framework corporate loans are made in the following categories:

Green loans to buy property

Loans to finance commercial property and/or residential property with one of the following certificates:

  • BREEAM Excellent
  • LEED Gold
  • Swan Ecolabel

Loans can be inflation-linked or non-indexed. Loan term of up to 30 years.

Green construction loans

Construction loans are for the construction of property which will have one of the following certificates when complete:

  • BREEAM Excellent
  • LEED Gold
  • Swan Ecolabel

Loans can be in the form of an overdraft or a revolving credit facility and increase in line with the higher value of the underlying asset at any given time.

  • The cost value of the underlying assets is re-evaluated as the loan increases.
  • In the case of larger projects, the cost value must be evaluated by a third-party expert.

Green lot financing

Loans to buy building lots and/or for refinancing where the underlying lot and/or planned building has the following certificates:

  • BREEAM Excellent
  • LEED Gold
  • Swan Ecolabel

In the case of larger projects, the cost value must be evaluated by a third-party expert.

Green property renovations

Loans for construction work on property which will result in energy savings of at least 30%.

Sustainable fisheries

Loans to fisheries companies where more than 90% of company’s operating income is from the sale of certified fish products (MSC or ASC).

  • Updated figures required annually.
  • In the case of aquaculture the feeding policy is examined specifically.
  • Loans to install electric facilities at harbours and to support the transition to green energy in the fisheries.

NB. Direct financing of machinery and equipment which run on fossil fuels is excluded, e.g. direct financing of fishing vessels.

Energy consumption and savings

Loans for investments in or construction work on existing structures, infrastructure and equipment which reduce energy consumption.

  • Only processes which are not based on fuel fossils will be considered
  • Each project assessed on case-by-case basis.
    • Energy consumption must be reduced by > 30% in each project.
    • Data centres with PUE < 1.25.

Pollution prevention and control and wastewater management

Loans to companies which meet at least one of the following criteria:

  • Waste management and sorting of waste.
  • Prevention and management measures to reduce pollution in sea.
  • Sustainable wastewater management.

Renewable energy

Loans for investment in or construction of infrastructure, structures and equipment for producing renewable energy sources.

Types of energy sources include geothermal heat and hydro, wind and solar energy. Methane production with Swan Ecolabel.

  • Threshold is 100g CO2e / kWh and decreases to 0g CO2e/kWh in 2050 for all types of energy production.

Sustainable agriculture and forestry

Aimed at farmers and/or landowners involved in agriculture and/or forestry in some way.

Various criteria:

  • Measures which reduce GHG emissions by > 30%
  • Sustainable forestry and certified forestry projects.
    • FSC
    • PEFC
    • Verra VCS
    • Gold Standard