Swedish ICMIF member Länsförsäkringar announced it has made an additional investment of SEK 540 million (USD 55 million) in socially-oriented bonds to mitigate the health and economic effects of Covid-19 in the Nordic countries and in Africa. In the past month, Länsförsäkringar has invested a total of SEK 1.2 billion (USD 120 million) in social bonds on behalf of customers, financing social projects in the Nordic countries, Europe, Africa and in several emerging countries.
In this, Länsförsäkringar’s third recent investment in social bonds, SEK 240 million (USD 25 million) has been invested in a bond issued by the Nordic Investment Bank, intended to finance projects with clear social goals. Another SEK 300 million (USD 30 million) has been invested in a social bond issued by the African Development Bank. This bond will fund the struggle of African countries and companies to fight Covid19. These investment form part of Länsförsäkringar's sustainability work and efforts to support the United Nation’s Sustainable Development Goals (SDGs).
“The money raised by the Nordic Investment Bank will finance health care, strengthen social protection networks, support companies that manufacture medical devices and provide assistance to small and medium-sized companies that were negatively affected by Covid-19. The bond supports several of the UN's Global Goals, including Goal 3, health and well-being, and Goal 8, creating jobs and supporting small and medium-sized companies”, says Kristofer Dreiman (pictured), Head of Responsible Investments at Länsförsäkringar.
The investment in the African Development Bank-issued bond also supports, among other things, Global Goal 1 to combat poverty, and Goal 3, health and well-being.
Previously, Länsförsäkringar had invested a total of SEK 700 million (USD 70 million) in social bonds to mitigate the effects of the virus outbreak. Last month, it announced a first investment of SEK 300 million (USD 30 million) in a social bond issued by the International Finance Corporation (IFC), part of the World Bank, to support those affected by Covid-19.
Earlier this month, Länsförsäkringar made a second social bond investment of SEK 380 million (USD 37 million) in a bond issued by the European Investment Bank (EIB), intended to support the European healthcare system. The issue from the EIB was specifically intended to combat the ongoing Covid-19 pandemic and to increase access to health care, through the distribution of funds to national health authorities, hospitals and laboratory facilities.