Skandia invests SEK 540m in Kommuninvest social bond

Written by Michael Griffiths

04/04/2025

Swedish insurer Skandia has invested SEK 540m (£42.4m) in a social bond issued by Kommuninvest.

The bond, which will run until 2028, aims to provide financing to municipalities for investments in socially sustainable projects.

Kommuninvest has launched a social bond framework to finance investments that promote social sustainability in Sweden's municipalities and regions. The aim is to support projects that address important social challenges such as housing and living environments, safety and security, as well as health, education and culture.

This framework defines clear selection criteria for the projects that can be financed and includes a process for following up and reporting on the social impacts of the investments.

Skandia’s head of sustainability, Gabriel Lundström, said: “By investing in Kommuninvest’s first social bond, we continue to create long-term value not only for our customers, but also for society at large. This investment reflects our strategy to ensure good returns combined with healthy risk-taking while also meeting our aspiration to be a role model in sustainability.”

Head of fixed income and currency management at Skandia, Alexander Onica, added: “Kommuninvest is a well-reputed issuer with strong demand for its sustainable bonds. This bond is in the right direction to solve societal challenges and improve social sustainability while offering financial stability.”

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