Folksamgruppen invests in UN bonds to support small-scale agriculture

31 January 2024

Pension savers and policy holders within the Folksam group are participating and investing an additional SEK 100 million when the UN agency International Fund for Agricultural Development (IFAD) issues a new bond. This time Folksamgruppen is not the only investor, but is joined by Skandia. In total, Folksamgruppen has invested SEK 1.1 billion.

The International Fund for Agricultural Development (IFAD) issued its first ever bond in June 2022. Folksamgruppen, which also includes KPA Pension, then invested SEK 1 billion as the sole financier. The investment has contributed to reducing food shortages and increasing growth in the world’s poorer countries.

– The need for investments in agriculture is great. Helping small-scale farmers adapt to climate change and contribute to reducing food shortages in the world is more relevant than ever. This at the same time as we create a good return for our customers. It’s also exciting to be part of opening a new market, which we contributed to through the first investment, says Marcus Blomberg, Folksamgruppen’s investment manager.

The bond increases the ability to help small-scale farmers adapt to climate change, gain access to supply chains and markets, and produce more diversified food and develop rural infrastructure.