Swedish pension provider, Alecta, has invested SEK 4.25bn in a green bond issued by the Swedish government under the Swedish National Debt Office's Programme for Euro Medium Term Notes (EMTN).

The money borrowed will be linked to expenditure that contributes to achieving Sweden's environmental and climate goals.

Commenting, Alecta sustainability manager, Peter Lööw, said: "It is gratifying that the Swedish government has invested in green bonds that are classified as "dark green", the highest assessment level. Through this investment, Alecta further increases our customers' exposure to green investments with a long-term good return.”

In June 2020, the government decided on the framework for the green bond and what expenditure in the state budget it should be linked to. The framework is classified by the external reviewer Cicero as ‘dark green’, the highest level of assessment.

"Alecta has long pushed for the Swedish state to issue green bonds because it has great value in the transition towards a more climate-friendly society. The fact that this is now happening, also under a clear framework and reporting structure, is very positive and a development that we are convinced that Swedish citizens and pension savers want to be part of,” Alecta head of corporate governance and sustainability, Carina Silberg, said.

The issue was SEK 20bn and Alecta invested SEK 4.25bn. What distinguishes the green bond from the other bonds is that investors who buy it should be able to track which government spending the bond is linked to and what environmental and climate impacts the spending helps to achieve.

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