Green, social and sustainability-linked
There was intense activity in the primary market at the beginning of the month as companies sought to reach investors before the summer lull. This led in turn to slower activity in the secondary market. We saw no major changes in credit margins this month.
June offered a lot of issues, and the fund participated in several. New names include medical technology company Getinge, which issued a social bond. As the name suggests, social bonds have social goals linked to issues such as exclusion, homelessness or mental illness. In Getinge’s case, the capital will be used to expand its capacity for life-support products and products that minimise the risk of contamination when manufacturing drugs, such as Covid-19 vaccines. Getinge issued a 3-year bond that pays Stibor +70 basis points.
On the real estate side, the fund invested in Catena, Diös and Atrium. Catena owns and manages logistics properties and issued a green 4-year bond at Stibor +135. Diös, with a focus on larger cities in the north and exposure mainly to offices, issued its first green bond with a term of 2 years that pays Stibor +140 basis points. We extended in Atrium Ljungberg by investing in its new 4-year green bond. Steel company SSAB also issued this month, a 5-year sustainability-linked bond coupled to the results of specific sustainability goals. SSAB aims to reduce its greenhouse gas emissions by 35 percent by 2032. This will be partly achieved with the help of HYBRIT, a project that aims to reduce the impact of steel production on the climate through fossil-free steel. The fund sold some positions with shorter maturities, including in Kinnevik, Castellum, Nibe and Wihlborgs.
As the first half of the year comes to an end, we are now entering the calmest of the summer months. Market activity slowed towards the end of June and will in all probability be low over the next few weeks.
Carnegie Investment Grade invests in well-managed, stable and sustainable companies. We prioritise a defensive and diversified portfolio, in line with our management philosophy.