Zwitserleven has recently invested in the green Dutch government bond. This makes it possible for Zwitserleven to lend money to the government with the guarantee that the money will be invested only in sustainable projects.
The Netherlands is the first country with a triple-A rating - the highest credit rating - to have issued a green government bond. The term of this bond is 20 years and it has been certified by the Climate Bonds Initiative.
Finance Minister Hoekstra has set strict requirements for the expenditure financed by the green bonds. This way, they meet concrete climate criteria, such as making a substantial contribution to reducing CO2 emissions. The proceeds of the recently issued bond will go to the production of renewable energy, insulation of rental housing, railway infrastructure, and making urban and rural areas resistant to extreme weather conditions.
There was a huge interest in the bond issue, both in the Netherlands and abroad. In the end, €6 billion was issued, although it could have raised more than €20 billion. The restriction had to do with the strict requirements for green bonds. Investors must be sure that the money they lend is really spent on sustainable projects. This green bond is the first of its kind for the Dutch State and is expected to be offered to the market more often.
Our asset manager ACTIAM has invested €49.5 million in the bond. The bond was purchased, among others, for our Zwitserleven Long Duration Fund. The successful contribution to this Dutch green bond underlines ACTIAM’s role as a sustainable investor. This investment brings ACTIAM's total assets under management in green, social and sustainable bonds to €1.5 billion.
This article is published on 16 August 2019