Swedish pensions and insurance group Folksam announced this morning it is the sole investor in a SEK400m (€35m) green bond issued by Skåne Regional Council to develop care and infrastructure in the southern Swedish region.
The lion’s share of the investment is being taken by Folksam’s municipal pension fund subsidiary KPA Pension, according to the pension investors.
The council’s borrowing was made against a pool of green investments that have been identified, so the bond’s proceeds would be drawn to fund various projects as needed – rather than being earmarked for specific work, Folksam said.
It cited a new care building on hospital grounds in Malmö as a good example of a project that was part of Region Skåne’s pool.
Camilla Larsson, chief executive officer of the SEK276bn KPA Pension, said that as the pension company for employees and employers in municipalities and regions, “if our investments in that sector can contribute to increased interest in welfare jobs, we have made great use of our customers’ pension money”.
Region Skåne worked in several ways to limit climate change, she said, which KPA saw as very positive.