Swedish local authority pension provider KPA Pension announced it has invested SEK500m (€49m) in green bonds from the municipality of Linköping via a private placement – with the bond issue having been specifically aimed at the pension fund.

The pension fund, which is 50% owned by pensions and insurance group Folksam, said the funds raised would be used by Linköping council to build an environmentally-certified swimming pool.

Camilla Larsson, chief executive officer of KPA Pension, said: “Investing in the operations of municipalities contributes to our customers receiving a secure and sustainable pension, and at the same time, they can already see their money being put to use today.”

The fund said the fact that employees’ occupational pensions were invested in municipal activities, among other things, helped achieve secure and sustainable pensions.

“KPA Pension calls this the good pensions wheel,” it said.

Larsson said Linköping Municipality, like KPA Pension, had a goal of becoming carbon neutral by 2025.

“It feels good to be able to contribute to their transition while our customers get a good return on their pension savings,” she said.

At the beginning of last month, the Folksam group, including KPA Pension, set new 2025 climate goals, pledging to reduce carbon emissions associated with their equities, corporate bonds and real estate portfolios by 29% by then.

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