Stockholm (NordSIP) – Although they are still a relatively small segment of the global sustainable fixed-income market, social bonds are an important part of the sustainability agenda, focused on improving social conditions. At the end of 2023, data from Nordea, social bonds represented 14% of the total sustainable bond market. Usually leaders in sustainability, the same data suggests that the Nordics are actually lagging behind, with social bonds representing a mere 1.6% of the broader market at the end of last year.
Now it appears Kommuninvest is preparing itself to enter the market. On November 5th, Kommuninvest held a lunchtime investor presentation seminar in Stockholm highlighting its financing activities contributing to sustainable development within the municipal and regional sector in Sweden.
According to the Swedish municipal funding agency, Kommuninvest’s presentation sought to focus on its preparations for the issuance of its first social bond during the first half of 2025, with the goal of supporting its Loan for Social Sustainability (Lån för Social Hållbarhet (LSH)) investment portfolio.
When a social bond is launched, it will be issued under Kommuninvest’s EMTN program, with the possibility of borrowing in the currencies SEK, EUR and USD.
The Loan for Social Sustainability Portfolio
LSH has been a part of Kommuninvest’s loan portfolio since 2021. This loan product is targeted at Swedish municipalities, regions and public housing companies that want to develop, strengthen and showcase their sustainability work. LSH was developed in close collaboration with some ten of Kommuninvest’s members and customers. The loan product provides support and tools to be able to follow up and evaluate social efforts more easily, as well as a good platform for internal collaboration between different disciplines.
These loans can be granted for three types of investments. Investments in Accommodation and Living Environments qualify for LHS loans if they fund socially sustainable renovations, district development with social sustainability in focus, new housing forms to achieve social goals or special investments, such as safer laundries. Investments in Safety, Security and Accessibility qualify for LHS loans if they fund safer outdoor environments, upgrades in park environments, innovative investments in the rescue service or investments in increased security in care for the elderly. Investments in Health, Education, Sports and Culture qualify for LHS loans if they fund family centers, preschools, culture houses, or the construction or refurbishment of sports halls.
Applications for LSH loans are handled by an expert Committee for Social Sustainability, consisting of external members independent of Kommuninvest. At the time of this announcement, the Committee for Social sustainability had eight members: Sara Bjurström Sustainability manager at Haninge; Anton Berg, Development leader social sustainability at Uppsala municipality; Tomas Bokström, Project manager, responsible for Social & Health Impact Center at RISE; Ingmar Ångman, Head of Social Welfare at Region Örebro County; Anna Giotas Sandqvist, Director of Social Sustainability at Eskilstuna; Lars Hultkrantz, Professor emeritus at the School of Economics at Örebro University; Åsa Dahlin, Head of strategic planning at Södertälje municipality; and Malin Schöld Financial manager, integration and labor market administration at Linköping municipality
