Frosta Vassverk

Green projects
Although we are only seldom affected by failing water supply or low quality water, there is still a need to maintain and upgrade the Norwegian water system and pipes. KBN is not an expert in this field, but we are in other areas, such as getting finances for this upgrade, through green bonds.

Frosta is a peninsula in the Trondheim Fjord, which borders the Levanger municipality in the east. Due to its climate and fertile soil, Frosta is sometimes called Trondheims "Green garden". But you need water to cultivate a green garden and to get water you need a well-functioning water system. Hence to secure Frostas 2,500 inhabitants their water supply, Frosta Vassverk AL has started its renovation project of the old pipes and as the project fulfilled the green loan specifications, KBN offered a NOK 1.5M loan through its Green lending programme, according to CEO Bjørn Støwer.

Although the interest savings (NOK 16,000) over the life of the loan is not the largest amount, the signal effect of the green rate is very important for KBN and our owners as we wish to be environmentally conscious in all aspects.

It is important for municipalities to have access to predictable, long-term and affordable financing. The possibility to finance the maintenance and renewal of the water network with a green rate provides benefits for both the owners and its users.