Skandia has announced it is investing SEK 540m as a lead investor in Kommunivest's first social bond, which will run until September 2028.

The bond's purpose is to finance municipalities' investments in socially sustainable projects that address important challenges such as housing and living environments, safety and security, health, education, and culture.

The framework defines clear selection criteria for the projects that can be financed and includes a process for following up and reporting on the social impacts of the investments.

The bond's launch was marked on Thursday by the ringing of a bell on the Swedish Nasdaq stock exchange.

"By investing in Kommuninvest's first social bond, we continue to create long-term value not only for our customers, but also for society at large," said
Skandia head of sustainability, Gabriel Lundström.

"This investment reflects our strategy to ensure good returns combined with healthy risk-taking while also meeting our aspiration to be a sustainable role model," he added.

"Kommuninvest is a well-reputed issuer with strong demand for its sustainable bonds," continued Skandia head of fixed income and currency management, Alexander Onica.

"This bond is in the right direction to solve societal challenges and improve social sustainability while offering financial stability."

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