The bond was issued to two investors: Swedish pension fund Kåpan and Swedish insurer Skandia, under the IFAD Sustainable Development Finance Framework. The proceeds of the issuance will be used to finance IFAD’s development projects globally, focusing on transforming rural areas to become more productive and prosperous, ultimately improving the livelihoods, food security and resilience of millions of rural people.
“We at SEB are really proud to have worked with IFAD on another successful bond transaction and to have helped expand the fund's growing investor base. IFAD offers one of few opportunities for investors to gain exposure to a UN agency dedicated to transforming agriculture, rural economies and food systems in developing countries,” says Benjamin Powell, Head of Sustainability, Fixed Income at SEB.
IFAD-supported projects work with rural populations to access tools, inputs, and technologies to increase production sustainably, and to access credit, markets and value chains. Through these projects IFAD provides guidance and support on best agricultural crops and practices required to adapt to a changing climate.
“We are very pleased to start the year and the IFAD13 three-year programme of work so strongly and to partner with a new like-minded investor Kåpan, a pension fund with a very strong focus on sustainable development and social inclusion. We are also very pleased for the continued support from Skandia as they are participating in one of our issuances for the second time,” says Natalia Toschi, Head of Funding, IFAD.
Read more: IFAD issues its second club deal to Kåpan and Skandia (ifad.org)