KPA Pension and Folksam buy bond from the city of Stockholm for SEK 2 billion

KPA Pension and Folksam, which are part of the Folksam Group, are investing SEK 2 billion in a bond contributing to the creation of a sustainable Stockholm. With this investment, Folksam Group intends to highlight the significance of planning and building cities and communities that are inclusive, safe, resilient and sustainable. At the same time, the deal contributes to the goal of giving customers a good risk-adjusted return.

Stockholm is one of Europe’s fastest growing metropolises. By 2040, the city is expected to have 1.3 million inhabitants, and a simultaneous ambition of being a fossil-free city. Without sabotaging conditions for future generations, Stockholm shall continue to grow with people as its starting point and respect for nature’s limits. To the Folksam Group, the purchase of the bond is in keeping with their strategy of investing in sustainable development.

“I am very happy that, in this way, we are able to contribute to Stockholm City’s goal of creating a sustainable city for the future. It falls well within our vision that our customers should feel secure in a sustainable world, at the same time as it contributes to the goal of creating a competitive return for them. We want to highlight the UN’s Sustainable Development Goal No.11, which concerns sustainable cities and communities. At the same time, this transaction is an example of how we, as a pension and insurance actor, can contribute to the municipalities’ transition to sustainable cities,” says Jens Henriksson CEO and Group President of the Folksam Group.

Stockholm’s population growth creates demands for investments that will meet the increased needs of housing, infrastructure and vital societal functions within the framework of a sustainable growing city.

• The city is making substantial investments to enable the construction of new energy-efficient residences in a number of new urban development areas.
• Stockholm is investing in creating new parks and green areas, as well as improving the usability of those that already exist. These recreation areas serve many vital functions in a sustainable city; they reduce temperatures during warm weather and the risk of flooding.
• The expected increase in the number of children and youth increases the need for investments in schools and pre-schools. Meeting the educational needs of younger residents is central to a sustainable Stockholm.
• The city is investing in increased trafficability through environmentally-friendly transportation options. Good conditions for pedestrians and bicyclists are an important part of reducing fossil fuel emissions and ensuring a sustainable transport system. The city is also investing in charging stations, to meet the increasing use of electrical vehicles in Stockholm.
• A new wastewater treatment plant will double the capacity of the city’s wastewater system and cover the city’s needs until 2040. With modern treatment technology, discharge of nitrogen can be reduced by 40 per cent and phosphorous by 33 per cent, while simultaneously filtering out a greater amount of pollutants and microplastics. This increased capacity reduces the risk of flooding and thus, the release of sewage water into nearby waterways during heavy rains.

The investment is divided according to the following: KPA Pensionsförsäkring SEK 1000 million, Folksam Life SEK 900 million, Folksam General SEK 100 million.

 

For more information:

Michael Kjeller, Manager, Asset management Folksam Group +46 (0)708-31 53 21
Christian Hall, Investor Relations Manager Folksam Group, +46 (0)724 68 70 60