Alecta Pensionsforsakring, Stockholm, invested $100 million in a social bond aimed at promoting healthy living in emerging markets, in a push to boost its commitment to the sustainable development goals.
The social bond, which is backed by the Swedish International Development Cooperation Agency, was issued by a company set up by impact investment manager responsAbility, a spokesman confirmed. ResponsAbility will manage a loan portfolio that will help emerging market companies with short-term and long-term financing needs.
The 5½-year bond will finance investments that improve access to health care and sanitation, enhance sustainable food production, provide access to finance and reduce pollution through renewable energy.
"When public and private capital work together, the whole becomes greater than the sum of the parts," Julian Jonsson, portfolio manager at Alecta, said in a news release.
"As long as we find good structures with credible partners such as responsAbility, we will continue to invest in products that gives a stable return and enables solutions to pressing challenges," Mr. Jonsson said, noting there is a shortage of impact strategies suitable for institutional investors but plenty of institutional capital chasing such opportunities.
Alecta has 900 billion Swedish kronor ($108.2 billion) in assets and 18 billion kronor in social bonds.