Luxembourg, 29 April 2021—Nordea Asset Management (NAM), a global leader in sustainable and responsible investment, has extended its suite of ESG-focused solutions with the addition of the Nordea 1 – Global Green Bond Fund.

The Nordea 1 – Global Green Bond Fund (“the Fund”), which was formally launched on Earth Day 2021 (22 April), is managed by Anton Nykvist and Sascha Stallberg. The duo will leverage the expertise of the firm’s wider Emerging Markets Debt Team, led by Thede Rüst. The managers will also draw upon the insights of NAM’s renowned 19-strong Responsible Investments Team.

The Fund will adhere to the ICMA Green Bond Principles, the voluntary guidelines aimed at ensuring the integrity of the green bond market, as well as the EU Green Bond Standard. To be classed as a green bond, the proceeds of the issuance must be exclusively used to finance or re-finance projects or activities demonstrating a positive environmental impact.

At least 70% of the Fund’s assets will be invested in dedicated green bonds, which will be used to finance green projects aligned with the objectives of the EU Taxonomy. The managers can also explore opportunities within social and sustainability-linked bonds, as well as conventional bonds from corporates at the forefront of the environmental agenda. Issuers failing to meet NAM’s ESG standards are excluded from the investment universe.

Thede Rüst, the Head of NAM’s Emerging Markets Debt Team, comments:

“Climate considerations are continuing to gain traction – with investors, politicians, regulators and companies increasingly acknowledging the need to rapidly transition to a lower-carbon society. We are incredibly excited about the launch of the Global Green Bond Fund, as debt markets will have a crucial role in funding the projects vital for a sustainable future.

“Green bonds have not only displayed robust return characteristics relative to conventional fixed income assets, they also offer clients protection against climate-related downside risks. With such appealing long-term attributes, we expect green bonds to become a core element of investor fixed income allocations in the years ahead.”

The global green bond market, which has rapidly expanded in recent years, is likely to witness continued strong future growth, as ESG considerations increasingly gain traction across all levels of society. As demand intensifies for green bonds, this segment of the fixed income universe is poised to play a pivotal role in financing the assets required for the global economy’s low-carbon transition.