APs Form Alliance to Fund Infrastructure


Stockholm (NordSIP) – Together, the Swedish state pension funds AP1, AP3 and AP4 annouced joint venture to invest in unlisted Swedish companies focused on infrastructure.

From left to right: Kerstin Hessius, CEO of AP3, Johan Magnusson, CEO AP1 and Niklas Ekvall, CEO of AP4 Photo: AP4

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A newly formed entity, Polhem Infra, will make long-term investments in infrastructure in an efficient and cost-effective manner. Sweden, like many European countries has a strong unmet investment needs to renew and develop infrastructure. While the fund may not have received any particular green label, the announcement explicitly cites sustainability and collaboration as the target for the new investment vehicle.

According to the press release, Polhem Infra will finance businesses that operate or provide socially beneficial services and assets such as renewable power generation, energy storage, energy distribution and digital infrastructure. The comapny’s goal is to be a stable, responsible and long-term owner. Polhem Infra will focus on major investments in the private and public sector, preferably together with other long-term industrial or financial partners.

The AP funds, which will back Polhem Infra entirely, already have extensive experience in investing and building profitable unlisted companies, such as property company Vasakronan, or others like Hemsö, Ellevio, Rikshem, CityHold and Willhem.

“Sweden has a great need for both public and private infrastructure investments. Parts of existing infrastructure will require major investments to cope with society’s demands for both quality and sustainability. With a long-term ownership and focused sustainability work, Polhem Infra has the potential to become an attractive and prioritized player and business partner, which in the long term will benefit both the pension system and society as a whole,” said Johan Magnusson, CEO AP1, Kerstin Hessius, CEO of AP3 and Niklas Ekvall, CEO of AP4 in a joint statement (in Swedish).

Image by Free-Photos from Pixabay

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The coronavirus epidemic has further accelerated the rise of ESG into the investment mainstream. As deficits skyrocket, bond investors have an opportunity to engage with governments on climate change, argues Thomas Dillon, Senior Macro ESG Analyst at Aviva Investors.

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