Together with the Danish state and three other large Danish pension funds, PKA is investing in a new fund that will meet the UN’s global goals through investments in a number of the world’s poor countries.
The fund has been named World Goals Fund II. It is being raised by the Investment Fund for Developing Countries (IFU). In addition to PKA, the investors are the pension companies PFA, P+ and PenSam.
Together, IFU, which is financed by the Danish state, and the four investors put DKK 2.7 billion into the fund. PKA contributes with an investment of DKK 400 million.
The money must be invested in the private sector in developing countries in Africa, Asia and Latin America and help support the green transition, contribute to better living conditions and at the same time create good returns for the investors.
“We know that climate change hits the world’s poor countries the hardest, and that this is where investment is most needed. Still, as a pension sector, we have far too few investments in those countries. It’s not because we don’t want to, but because it’s difficult. The risk is high and the investments are inaccessible. Together with the IFU, we can lower the risk and get the Danes’ pension money out and work for a better society, which is why we have joined the World Goals Fund II,” says Jon Johnsen, CEO of PKA.
The new fund builds on the experiences from the World Goals Fund I, to which PKA also contributed. Both funds are part of the Danish effort to realize the UN’s 17 global goals and are a unique public-private collaboration, where public capital is used as leverage to mobilize risk-averse private capital for investments in developing countries.
The fund is structured so that the private investors have first right to the first 6% of the return. In addition, an EU loss guarantee has been signed, which means that the EU covers any losses for private investors in the Global Goals Fund II of up to DKK 535 million.
“Our most important task is to create good returns for our members, but we also want to contribute to a safer and more sustainable future through our investments. With the fund’s various protective measures, we can both create good returns for our members, and we can push the green transition and ensure better living conditions for the population in developing countries,” says Jon Johnsen.
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