AP7 has participated in an issue from Nordea intended to finance sustainability-linked loans, so-called Sustainability-Linked Loans Financing Bonds (SLLB). The bond contains a portfolio of loans where the loan terms are linked to the company’s fulfillment of specific sustainability goals. The sustainability-linked structure creates strong incentives for real transformation in the companies’ operations.
Nordea’s framework ensures that the loans included meet high standards. Among other things, the loans must contribute to at least one climate change mitigation goal and have clear, measurable and ambitious targets that are reviewed by an external party.
– Our ambition is for AP7 Fixed Income Fund to contribute to both stable returns and sustainable development. The investment in Nordea’s SLLB is part of our long-term strategy to direct capital towards solutions that contribute to climate change and companies that work to reduce their climate impact. By broadening the fund to more sustainable formats, we strengthen both risk management and our responsibility as a lender, says Charlotte Sillén, Head of Fixed Income AP7.
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