Swedish pensions and insurance group Folksam has invested SEK1.5bn (€140m) in Nordic infrastructure fund Infranode II, as the first investor in the new fund along with the IKEA-linked IMAS Foundation which appears to be putting in a similar amount.
Michael Kjeller, head of asset management and sustainability at the Folksam Group said: “We are committed to infrastructure investments to safeguard continued good returns to our customers while participating in the important transition to a more sustainable society.
“The investment will provide us with assets with safe and stable cash flows while contributing positively to risk diversification in the Folksam Group’s asset portfolios,” he said.
The Infranode II investment would give the group access to “a broad and well-balanced portfolio of Nordic infrastructure,” Folksam said.
In all the fund, which Folksam said was targeting good, secure returns by investing in new climate-friendly infrastructure, expects to raise SEK10bn.
Infranode is a Swedish infrastructure manager investing mainly in the Nordic countries with a time horizon of at least 25 years, and a focus on energy, transport, telecommunications and community assets, it said.
Back in 2017, Folksam invested SEK1bn as a group in Infranode’s first fund, Infranode I.
That fund has nine holdings including port concession Gävle Hamn, Järfälla Municipality’s solar power plants and a number of energy companies supplying district heating, for example, which are jointly owned with municipalities, according to Folksam.
Following its investment, the pensions group said Infranode II has a capital of just over SEK3bn, and that it was the first investor in the fund together with the IMAS Foundation.
KPA Pension, Folksam’s local government pension fund subsidiary, will be taking almost half of the group’s SEK1.5bn with SEK720m of the assets being assigned to its portfolio, while life and pensions firm Folksam Liv will take SEK630m with the remaining SEK150m going to accident insurer Folksam Sak.