Japan’s Sumitomo Life Insurance has bought A$120 million (US$85.67 million) or 10 billion yen of ten-year sustainability bonds issued by BNG Bank, a Dutch state-owned lender, to finance social housing in the Netherlands.
The proceeds will be used support loans of the Dutch Social Housing Association that are linked to the United Nations sustainable development goals, Sumitomo Life says in a statement on January 22.
It’s not clear whether the insurer invested in the entire offering, or whether it was one investor in a bigger issuance. Spokespersons for Sumitomo Life and BNG Bank did not immediately respond to questions from Asia Asset Management.
The Dutch Social Housing Association, which primarily provides affordable rentals to lower income people, will also draw down on the proceeds to improve sustainability of residential areas, Sumitomo Life says.
“As a medium- to long-term international investor, Sumitomo Life promotes responsible investment in the belief that it will contribute to the realisation of a sustainable society and enhanced return, and invests in the bond as part of such efforts,” the insurer says.
BNG began issuing sustainability debt for the housing association in 2016, and had sold 12.2 billion euros ($13.79 billion) of bonds in 71 offerings as of September 2020.
Osaka-based Sumitomo Life had $371.1 billion of assets as of March 2021.
