Folksam invests nearly SEK 4 billion in green bonds from the World Bank

18 February 2022

africa, mali, donna contadina

Swedish ICMIF member The Folksam Group has recently completed an investment of approximately SEK 3.8 billion in a green bond from the World Bank (International Bank for Reconstruction and Development, IBRD) aimed at financing sustainable development around the world. The Folksam Group is the sole investor in the bond, which will help support renewable energy, energy efficiency and biodiversity projects, among others.

The Folksam Group is one of the major investors in green bonds, with the latest investment in the World Bank’s green bonds bringing the Folksam Group’s total holdings to more than SEK 27 billion.

“I am pleased with the close cooperation that the Folksam Group has had for a long time with the World Bank and its various initiatives for sustainable development. As a Folksam customer, you not only get a secure return on your pension money, but also contribute to a sustainable future,” says Marcus Blomberg, Head of Investment at Folksam Group.

Examples of projects the World Bank’s Green Bonds are helping to finance:

  • In Indonesia, a geothermal energy project is underway that will reduce CO2 emissions by 30 million tonnes over the next 30 years.
  • In Botswana, a water project is underway to facilitate and improve water supply for areas affected by recurrent drought.

“World Bank bonds are a way for investors to contribute to their sustainable investment goals as they channel funds to our member countries for a greener and more resilient future. We are delighted to partner again with the Folksam Group and appreciate their holistic approach that includes not only green, but sustainable investments overall,” said Heike Reichelt, Head of Investor Relations and Sustainable Investment at the World Bank.

The total investment of approximately SEK 3.8 billion is distributed as follows within the Folksam Group: Folksam Liv SEK 1,650 million, Folksam Sak SEK 500 million, KPA Tjänstepensionsförsäkring SEK 1,600 million and KPA Tjänstepension SEK 40 million.

For member-only strategic content on the cooperative/mutual insurance sector, ICMIF members have exclusive access to a range of online resources through the ICMIF Knowledge Hub.

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