Swedish pension fund Alecta has invested in a bond to promote the Sustainable Development Goals (SDGs) in emerging markets, which has been guaranteed by development agency Sida.
It marks the first time the Swedish development agency has guaranteed a privately-funded social bond.
Insurance company AFA Insurance has also invested in the $152.5m bond, which priced this week. Danske Bank acted as arranger.
Effectively structured as a securitisation, the proceeds of the bond will pool the financing needs of “an extensive loan portfolio” that addresses SDGs in emerging markets, originated by impact-focused asset manager responsAbility.
“The purpose of the loans is to finance both short-term and long-term needs of the borrowers, including working capital, inventory or receivables financing, as well as capital expenditures,” said Alecta.
The bond has been issued by a special purpose vehicle (SPV) called Financing For Healthier Lives, Julian J…