AP7, AP2, AP3 and Folksam are among Swedish and international investors to have invested in a new SEK2.6bn (€230m) green bond raising “blue” finance resources for emerging markets — issued by the International Finance Corporation (IFC), an arm of the World Bank.

The IFC said the bond was designed to promote ocean-friendly projects and improve access to clean water and sanitation in emerging markets.

It said the bond had attracted “multiple orders from Swedish and international investors”, including from AP2, AP3, AP7, the Folksam Group, Handelsbanken Fonder, Länsförsäkringar Liv, LF Västernorrland, SEB Asset Management, Swedbank Robur and Skandia.

AP7 said it had invested SEK1bn in the IFC bond, and in addition, had put SEK1bn into a blue/green bond issued by the Asian Development Bank (ADB).

Ulrika Linden, senior portfolio manager at AP7, said water was one of the pension fund’s key focus areas within its green investments.

“To work with core institutions like IFC to highlight actions and create more focus around water is therefore consequently of high importance,” she said.

“Through this investment, where IFC provides a healthy financial proposition combined with a water focus, we feel we can move forward in raising awareness and engage in the essential topic,” Linden said.

This is the second green bond the IFC has issued promoting its blue finance investments – the previous one was also denominated in a Nordic currency, being an NOK2bn issue in conjunction with World Water Day back in March.

Tom Ceusters, director for treasury capital markets and investments at the IFC, said: “We’ve seen growing interest in blue finance since IFC published guidelines for blue finance that provide investors with guidance on project eligibility criteria.”

Funds raised through the IFC’s green bond programme supported investments into blue projects that improved the health of marine ecosystems, provided access to clean water, and strengthen climate resilience, Ceusters said.

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Rachel is IPE's Nordic correspondent. She has long been a freelance writer, and over the years, has written for The Telegraph, The Independent, The Observer, AMWatch and elsewhere. In 2001, Rachel's personal finance book Kickstart Your Money was published by John Wiley & Sons.View full Profile

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