IPE ipe.com 11 Jun, 2021 18:00 am

Danske saw ‘high investor interest’ for Alecta-bought social bond

Danske saw ‘high investor interest’ for Alecta-bought social bond
Could take time for institutions to find right place in mandate for this type of impact investment, says Hökfelt

7m) emerging markets social bond Alecta bought into this week was more than six years in the making, according to arranger Danske Bank, which hopes to put similar instruments together given high demand from other institutional investors.” During that time, he said, a lot of ground was covered, and the work had not begun with the idea of a social bond.We had many who would like to have participated, but the complexity involved in doing this for the first time was a bit too much for a first-time investor in a social bond,” he said.Alecta revealed yesterday that it was investing $100m in the new blended finance social bond called “Financing For Healthier Lives”, with proceeds aimed at health, financial inclusion and renewable energy and other types of project in Africa, Asia, Latin America and Eastern Europe.

Patrik Hökfelt, who has been heading up the project at Danske Bank, told IPE: “We had been discussing this for five or six years when we started the work on what ended up being this transaction.Danske Bank wants to make this type of bond investable for a broader range of investors, according to Hökfelt.

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