Six asset owners have invested in a 20-year 3 billion Danish kroner ($1.9 billion) green bond issued by the World Bank.
The 933 billion Danish kroner ATP, Hilleroed, Denmark; the 500 billion Danish kroner Danica Pension, Copenhagen; the 576 billion Danish kroner PFA Pension, Copenhagen; the 114 billion Danish kroner MP Pension, Gentofte, Denmark; the 140 billion Danish kroner PenSam, Farum, Denmark; and the 367.4 billion Swedish kroner ($38 billion) AP2, Gothenburg, Sweden, were among investors of the first green bond issued by the World Bank in Danish kroner since 1997.
“Investing in green bonds from the World Bank is a fine way to support the green transition, and at the same time it gives a good risk-adjusted return,” a PenSam spokesman said in an emailed comment. “Our investment in the World Bank green bond is 400 million kroner, and it is our first large investment in green bonds,” he added.
MP Pension has an allocation of 5 billion Danish kroner to climate-related investments and it invested 400 million Danish kroner in the World Bank’s new issuance, he said.
Andreas Stang, head of ESG at PFA said in an email that the fund “invested in the bond because it was a good fit for our portfolio with both the right size and price.”
The World Bank has issued $13.7 billion equivalent in 160 green bonds in 22 currencies since 2008.
Spokesmen for the other investors were not immediately available.