AP7 Fixed Income Fund is investing SEK 1 billion in a social bond that finances rental housing in areas classified by the Swedish Police Authority as vulnerable or particularly vulnerable. The bond is earmarked to promote housing with high social significance and is the first purely social bond in Swedish kronor to be issued by a Swedish property company.
In 2025, AP7’s investment opportunities were expanded to more formats of bonds in addition to green ones, such as social and sustainability-linked bonds.
“ AP7’s goal is to continuously increase the capital invested in sustainable bonds. The investment in this social bond is part of our long-term strategy to direct capital towards solutions that have real impacts ,” says Charlotte Sillén, Head of Fixed Income Management at AP7.
The bond is issued by the real estate company Balder and is issued under the company’s framework for green and social financing, which is in accordance with ICMA’s Social Bond Principles. AP7 is the sole investor.
The investment fits well into our in-depth theme Sustainable Construction, where we focus on developing and disseminating best practice for how capital can contribute to both social and environmental impacts. We welcome the establishment of more social bonds on the Swedish market, says Marika Hilldoff from AP7’s asset management and responsible for AP7’s theme Sustainable Construction.
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