Andra AP-fonden – a decade of green bonds

Andra AP-fonden (AP2) today publish a report to provide an aggregated overview of the Fund’s green bond portfolio and the investments in environmental initiatives and projects. AP2 currently has a global portfolio of green bonds worth 5.7 billion SEK, comprising bonds issued by 52 different issuers and involving 1,300 different projects in 96 countries.

AP2 has now been active in the green bond market for a decade. In November 2008, AP2 participated in the World Bank’s first green bond issue, becoming one of the pioneers. Since then, the proportion of green bonds has gradually grown and since 2016 green bonds is a strategic asset class for the Fund.

“Climate change is one the greatest challenges of our time. Extensive investments are needed for a transition to a more sustainable global economy. When the opportunity to invest in green bonds was introduced in 2008, we saw a unique opportunity to combine global fixed income management and our commitment to climate change,” says Lars Lindblom, Fixed Income Portfolio Manager at AP2.

Green bonds are an efficient instrument for mobilising environmental related investments and increasing awareness of environmental issues. Today sustainability must be considered for all kind of organisations. Environmental issues involve risks as well as opportunities; everything from more frequent occurrences of extreme weather to new regulations and changing consumer preferences. Green bonds visualise and highlight sustainability efforts in organisations and investments undertaken to support the transition to a more sustainable development.

“Green bond reporting of proceeds gives us as investors more detailed information about the issuers and especially about their investments in environmental projects”, says Lars Lindblom.

The green bond market continues to grow. Interest in sustainability issues in general is increasing in the financial sector, especially in green bonds. AP2’s portfolio is expected to continue to grow on commercial terms as more and more investors choose to invest in green bonds.

Read the report on AP2´s external webpage.

For more information, please contact Lars Lindblom, Fixed Income Portfolio Manager at Andra AP-fonden, or Ulrika Danielson, Communications Manager, Tel. +46 (0)31 704 29 00.