Alecta has invested SEK 4.25 billion in a green bond issued by the Swedish government under the Debt Office’s program for Euro Medium Term Notes (EMTN). The money that is borrowed must be linked to expenses that contribute to achieving Sweden’s environmental and climate goals.
Alecta is already one of the world’s largest investors in green bonds. With this investment, the portfolio amounts to more than SEK 50 billion.
– It is gratifying that the Swedish state has invested in green bonds that are classified as “dark green”, the highest rating level. Through this investment, Alecta further increases our customers’ exposure to green investments with a long-term good return, says Peter Lööw, Sustainability Manager in Asset Management at Alecta.
In June 2020, the Government decided on the framework for the green bond and what expenditures in the central government budget it will be linked to. The framework is classified by the external examiner Cicero as “dark green”, the highest assessment level.
– Alecta has long worked for the Swedish state to issue green bonds because it has a great value in the transition to a more climate-adapted society. That it is happening now, also under a clear framework and reporting structure, is very positive and a development that we are convinced that Swedish citizens and pension savers want to be part of, says Carina Silberg, Head of Corporate Governance and Sustainability at Alecta.
The issue was SEK 20 billion, Alecta invested SEK 4.25 billion. What distinguishes the green bond from other bonds is that investors who buy it must be able to follow which government expenditures the bond is linked to and which environmental and climate effects the expenditures contribute to achieving.
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