Sweden’s Folksamgruppen has invested SEK 400m in a new green bond issued by Region Skåne.

Region Skåne sought sustainable investments in healthcare and infrastructure, with Folksamgruppen the sole investor in the region’s new green bond.

Of the SEK 400m investment, KPA Pension accounted for SEK 266m of the total.

The green bond covers a wide range of investments in energy-efficient buildings and public transport, among other things.

The largest project in the pool is a new care building on the hospital grounds in Malmö.

Its green projects also include six wind turbines and 30 new passenger trains.

Region Skåne began issuing green bonds in 2016, which are managed via a framework based on environmental goals set by ICMA.

A ‘green group’ with representatives of the region's operations has the task of developing projects that meet the benefits specified in the framework.

Furthermore, there are several ‘control functions’ that aim to ensure that the green loans are used in a sustainable way.

Every year, a report is submitted to the investors on how the money is used and what environmental benefits are achieved.

“Green bonds are one of our main options for long-term borrowing,” said Region Skåne finance manager, Gustav Öhrvik.

“Funding is allocated on an ongoing basis as needs arise. In this way, all investors get a share of all green objects.”

KPA Pension business development manager for sustainable investments, Mark Johnsson, added: “We see this as an important investment in our goal of contributing to society's climate transition and climate adaptation.

“Municipalities and regions will do the heavy lifting in this, and we want to be involved.”

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