IFAD issues SEK 900m sustainable bond to Skandia and Kåpan

Written by Callum Conway

24/01/2025

The UN’s International Fund for Agricultural Development (IFAD) has issued its 10th sustainable bond for SEK 900m under its Sustainable Development Finance Framework to Swedish pension investors Skandia and Kåpan.

Skandia is investing SEK 400m in the bond, which aims to combat hunger and poverty, while Kåpan is contributing the remaining SEK 500m.

The proceeds from the issue will help finance IFAD's development projects globally, with a focus on transforming rural areas into more productive and prosperous areas.

IFAD-supported projects work with rural populations to access tools, inputs, and technologies to increase production sustainably and to access credit, markets and value chains. Through these projects, IFAD provides guidance and support on the best agricultural crops and practices required to adapt to a changing climate.

Commenting, Kåpan CIO, Marie Giertz, said: “We at Kåpan are very pleased with our first investment in IFAD’s funding program, which alongside a very strong credit rating offers us clear sustainable development impact targeting rural people in developing countries and helping them overcome poverty.”

In addition, Skandia head of fixed income and currency management, Alexander Onica, said this type of investment "contributes to generating stable returns for our customers and policyholders".

"It also promotes value creation and improved quality of life on a broader scale. Thus, Skandia continues to play an active role in driving more sustainable development, both in Sweden and globally. We have previously invested in IFAD and we are happy to continue supporting their investment program for rural areas in developing countries."

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