PEAB – new green bond
The first half of August was still influenced by holidays and quiet markets, but during the second half of the month things started to move and we saw increasing activity. Investors were ready and waiting when companies took to the primary market, and demand proved to be high after a long period of issues being conspicuous by their absence and of a relatively barren secondary market.
Carnegie Investment Grade participated in three issues this month, two of which were from companies that we already had exposure to.
Lifco, a conglomerate that acquires small and medium-sized companies for its Dental, Demolition & Tools and Systems Solutions units, issued a 2-year bond at Stibor +53 basis points.
SFF, Svensk fastighetsfinansiering, is a finance company that issues covered bonds for the five real estate companies that own it. These are Catena, Diös, Fabege, Platzer and Wihlborgs. Like the other bonds we own in this name, this was green and will finance long-term sustainable and climate-smart properties. It runs for 2 years and pays Stibor +60 basis points.
Construction company PEAB is a new name in the fund. It issued a 3-year green bond that pays Stibor +105. The money will be used partly for investments in energy-efficient buildings and water and waste management.
In addition, the positions in Finnish Aktia Bank, Indutrade and Danish Nykredit were increased slightly, while we sold the position in Wihlborgs.
Credit margins, which are already at compressed levels, continued to decrease further in most segments. We look forward to even more activity in the coming month as September is normally a month with many issues, and the secondary market will also certainly offer more activity.
Carnegie Investment Grade invests in well-managed, stable and sustainable companies. We prioritise a defensive and diversified portfolio, in line with our management philosophy.