ICMIF member Afa Försäkring and Alecta (Sweden’s largest private pension fund) announced recently that they have joined forces and invested in improved living conditions in developing countries, thus contributing to the achievement of the United Nation’s Sustainable Development Goals (SDGs) that have not advanced as much as might otherwise have been possible due to Covid-19. Afa Försäkring and Alecta say they believe that this initiative is a positive step in making the SDGs and the UN Agenda 2030 possible.
“Such social investments, especially in the field of health, resonate well with our purpose as an organisation. Investing in social bonds through this initiative is a way for Afa Försäkring to contribute to achieving the UN Sustainable Development Goals. We are pleased to be able to contribute and look forward to following up on the positive social effect that this financing provides,” says Linus Thand, Portfolio Manager at Afa Försakring.
Afa Försäkring and Alecta have invested in a new social bond called Financing For Healthier Lives. The bond is emitted by a non-profit company facilitated by responsAbility, an asset manager in the field with more than USD 10 billion invested in emerging markets. Sida, Sweden’s government agency for development cooperation, has guaranteed this privately funded social bond. Sida enables private funding of aid projects such as this by issuing a guarantee and this is the first time that Sida has guaranteed this kind of social bond with this type of funding.
Social bonds are bonds where the issue goes to benefit projects that address social problems or aim to have a positive social impact.
Afa Försäkring says it believes that this bond will have a broad impact on the UN SDGs. In addition to investments focused on health, the bond focuses on goals linked to financial integration, climate-smart agriculture, access to clean energy at a reasonable cost, and clean water and sanitation.
The social bond mobilises capital for the following UN Sustainable Development Goals:
Goal 1: No poverty
Goal 2: No hunger
Goal 3: Good health and well-being
Goal 6: Clean water and sanitation for all
Goal 7: Sustainable energy for all