Folksam Group in new acquisition of green bonds from the World Bank Group
Folksam Group has in a private placement acquired green bonds issued by IFC, the private sector arm of the World Bank Group, to a value of USD 350 million. Thus, the target of SEK 12 billion is reached and a new goal of SEK 25 billion has been set.
The investment of USD 350 million is equivalent to almost SEK three billion and it is the second time the Folksam Group acquires green bonds of the same size from a World Bank body as lender.
“I am very pleased with our close cooperation with the various bodies of the World Bank. To our customers, our extensive involvement in green bonds means safe returns, while their money contributes to environment- and climate-friendly projects,” said Jens Henriksson, President and CEO of Folksam Group.
Issuer is The International Finance Corporation (IFC), one of the World Bank’s five bodies. The IFC provides loans to projects in emerging and developing countries to promote their development and construction. Solar plant expansions in India and hydropower projects in Costa Rica are two exaples of projects that IFC funds.
“IFC is extremely pleased to collaborate with Folksam on this significant green bond transaction. We applaud Folksam’s decision to incorporate climate considerations into their investment decision making and align with the World Bank Group’s ambitious climate strategies,” said Ben Powell, IFC’s Head of Funding.
After today’s investment the Folksam Group has since May 2016 invested almost SEK 15 billion in green bonds. The target of SEK 12 billion is thereby achieved. The Folksam Group has set a new goal to by the end of 2018 hold SEK 25 billion in green bonds.
“The Folksam Group is today one of the largest private acquirers of green bonds in the world. Our SEK 15 billion add up to almost four per cent of our total assets under management. Our investments in green bonds are important in our efforts to promote sustainable development and to live according to Folksam’s vision,” said Jens Henriksson.
Folksam Life’s share is USD 159 million, Folksam General’s is USD 46 million, and KPA Pension’s share is USD 145 million.
For further information, please contact:
Michael Kjeller, Head of asset management, +46 8 772 73 21
Juha Hartomaa, Investor relations, +46 70 831 65 26
Folksam is a customer-owned company. We offer insurance policies and pension investments. Almost one in two Swedes is insured with Folksam, and we are one of the largest asset managers in Sweden. Our vision is that our customers should feel secure in a sustainable world. Read more at www.folksam.se.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, it uses its capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, IFC delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org.