Stichting Pensioenfonds ABP, Heerlen, Netherlands, committed €1 billion ($1.1 billion) to a mortgage investment vehicle managed by Vista Hypotheken, a subsidiary of Rabobank, said a spokesman for APG Asset Management, manager of the pension fund.
The €470 billion ABP initially invested €500 million and will increase the investment to €1 billion over the course of the next five years. Around half of the new investment will have a green focus.
The mortgages, financed by ABP, will be provided to consumers by Vista, which acts as a managing partner and distributor.
Menno van den Elsaker, head of alternative credits, and Kay Mennens, portfolio manager, who are responsible for the investment at APG, said in a news release: "We can earn 1% to 1.25% extra on mortgages compared to corporate bonds. Also, investing in mortgages involves only a limited risk. Experience shows that Dutch homeowners faithfully meet their payment obligations."
ABP invests €19 billion in mortgages globally; about €4 billion is invested in the Netherlands.