Green Finance Framework

 Bonheur ASA - Green Finance Framework 2020.pdf

  Green Finance Framework Reporting for 2020.pdf

Increasing the share of renewable energy in the global energy mix is crucial to deliver the targets of the 2015 Paris Agreement, and our investments throughout the renewable energy value chain will promote the transition towards a low-carbon and climate resilient future. To support this, in 2020, the Company established a Green Finance Framework (GFF) with an eligibility assessment from DNV and issued a NOK 700 million green bond loan to be used for eligible green investments as defined in the GFF. The GFF enables the Company, to issue green bonds or loans to finance what has been defined to be green projects. The framework is aligned with the ICMA Green Bond Principles and the LMA Green Loan Principles issued in 2018.

Implementing a green finance framework positions the Group of companies for the EU taxonomy, and the framework resulted in new green financing by way of a long-term bank loan for FOW, and a five-year green bond for the Company. The GFF covers activities within our Renewable Energy and parts of our Wind Service segments as described below and will mainly apply to investments made via the holding companies for the respective abovementioned business areas, FOR and FOO. Investments made by other subsidiariesmay however also be funded under the GFF when they are in line with the relevant defined criteria.

Renewable Energy
Investments and related expenditures directed towards the development, construction, installation, improvement,operation, repair and maintenance of renewable energy projects. Currently, this includes onshore and offshore windpower and can also include related research and business development as well as dedicated infrastructure

Wind Service
Investments and related expenditures directed towards upgrading existing turbine transport and installations vessels, such as crane and equipment upgrades and/or replacements, and potentially building new vessels, to meet estimated future market requirements of increased installation capacity

The framework also outlines the process to evaluate, select, track and report on such investments. Each Green Finance Instrument issued under this framework should in their relevant transaction documentation refer to the GFF.

As part of establishing the GFF, the Company established an internal Green Finance Committee (GFC) with participants from finance, operations/technical and HSEQ departments in the Company and relevant business units. The business units will nominate projects to the GFC, who will approve eligible green investments in the green investment portfolio.

In 2020 the GFC assessed and approved two specific projects as eligible green investments. EUR 10 million has been allocated to the upgrade of the crane on Brave Tern, one of the self-propelled jack-up vessels specially designed for transportation, installation and service of offshore wind turbines. In addition, EUR 30 million has been used to part finance the construction of Högaliden windfarm. The total green finance facility in the Company is NOK 700 million. As of 31 December 2020, a total of EUR 40 million (NOK 424 million) is allocated as eligible for green financing.