Following a successful pilot phase of around six months, Kommuninvest is now launching Social Sustainability Loans to all its members. As of today, the new loan product is available to 292 municipalities and regions across the country.
This is an innovative loan product which offers many opportunities. It was made for municipalities and regions, including their companies, that aim to strengthen and make visible their work for social sustainability.
Loans can be granted for investments in three categories: housing and residential environments / safety, security and accessibility / as well as health, education, sports and culture. The loans must finance investments that, as such or in the context of targeted social interventions, can contribute to achieving social objectives.
During the pilot phase, five customers/members have been granted loans for a total of approx. SEK 525 million: Botkyrkabyggen, AB Eidar Trollhättans bostadsbolag, Botkyrka municipality, Uppsala municipality/Uppsalahem and Ånge municipality/ÅFA. These customers have played important roles in the development process and are now included in the information material as good examples of social investments of various types.
The rules for Social Sustainability Loans are set out in the Social Bonds Framework. This framework has been verified in a second-party opinion from the independent analysis firm Sustainalytics. For those who would like to proceed with an application, there is a specific application form, supported by a special instruction. The basic documentation has been developed in collaboration between Kommuninvest, Danske Bank and SEB.
Loan applications are examined by the Committee on Social Sustainability. This committee includes eight experts with qualified and multifaceted knowledge in the social field, in research and innovation as well as operational development work.
Kommuninvest’s intention is to, further down the road, issue a first Social Bond. However, this will not happen until the total loan volume is large enough. The principle, just as for the Green Bonds, is that the funds from investors shall finance disbursed loans to eligible investment projects.
– Loans for Social Sustainability have been developed out of a clear demand from members. Many municipalities and regions have recently broadened their Agenda 2030 work by systematizing and intensifying their efforts to promote social sustainability. To be able to use social financing as an important tool in this context has been a recurring request. I am very positive about this new loan product and all the opportunities that it creates, says Göran Färm, Chairman of the Board at Kommuninvest Cooperative Society.
– After a period of comprehensive development work, including a succesful pilot phase, we are now going full scale. This is very positive. Being able to broaden sustainable financing to also include the social perspective is an important step forward for the municipal sector and Kommuninvest. This is a loan programme for both small and large municipalities and regions. Going forward, I hope that many of them will see and utilize the potential, says Björn Söderlundh, Head of Lending at Kommuninvest.
For further information
Björn Söderlundh, Head of Lending, tel: +46 72 512 62 17, e-mail: firstname.lastname@example.org
Björn Bergstrand, Head of Sustainability, +46 708 86 94 76, e-mail: email@example.com
David Ljung, Head of Communications, tel: +46 73 068 45 45, e-mail: firstname.lastname@example.org