Kommuninvest successfully issues SEK 3 billion in its first social bond

By mid-March, Kommuninvest had disbursed SEK 4.9 billion in Loans for Social Sustainability. In total, Kommuninvest's sustainable loans (Green Loans and Loans for Social Sustainability) accounted for 17.7% of Kommuninvest's total lending in 2024.

Social Loans as a tool to promote sustainability

An increasing number of municipalities consider social loans as a tool to develop their social sustainability efforts and to finance community projects aimed at creating safer residential areas, promoting integration, and strengthening long-term life conditions. Through Kommuninvest's Loans for Social Sustainability, 27 projects in 21 municipalities have already been approved, amounts to nearly SEK 11 billion. One example is Botkyrkabyggen, which in 2023 was approved SEK 3.8 billion for the renovation and further development of three residential areas in southern Stockholm.

Loans can be approved to municipalities and regions, including their companies, that want to strengthen and highlight their work for social sustainability. The financing is usually conditional on identified social initiatives targeted to achieving defined social goals.

- This social bond marks an important step in our efforts to build a financing program that promotes social sustainability. We are pleased with the strong investor interest and look forward to continuing to support projects that make a difference in society, says Tobias Landström, Head of Debt Management.

Fostering a systematic way of working, from planning to financing

Sustainable social investments can strengthen communities and reduce social exclusion in vulnerable areas by creating shared value for residents, service providers, property owners, and the local community and businesses. Kommuninvest has developed its social loans to clearly and measurably support local and regional efforts that promotes social sustainability. The ambition is to foster a culture of impact evaluation and a systematic approach to social sustainability.

- The importance of planning for the follow-up and evaluation of social interventions early in the process is crucial. Here, collaboration within and across operational boundaries is central. Only by working together, we can overcome the challenges that too often characterize today's local communities. The development of a social financing market is important to create long-term solutions that benefit both society and investors, says Björn Bergstrand, Head of Sustainability.

Kommuninvest's framework for social bonds has been developed with advice from Danske Bank and SEB and aims to ensure transparency and clear criteria for financing socially sustainable projects.

Transaction details: Press Points Pdf, 170.3 kB.

Kommuninvest's Social Bonds Framework Pdf, 471.7 kB.

Sustainalytics Second-Party Opinion Pdf, 5 MB.

Presentation “Loans for Social Sustainability” Pdf, 1.8 MB.

For further information:

Tobias Landström, Head of Debt Management, phone: +46 70 586 78 51
e-mail: tobias.landstrom@kommuninvest.se

Björn Bergstrand, Head of Sustainability, phone: +46 70 8 86 94 76
e-mail: bjorn.bergstrand@kommuninvest.se

Patrick Nimander, Chief Financial Officer, phone: +46 72 254 94 60,
e-mail: patrick.nimander@kommuninvest.se

Victoria Preger, kommunikationschef, tel: +46 70 266 87 26
e-post: victoria.preger@kommuninvest.se