The International Fund for Agricultural Development (IFAD) kicked off 2026 by issuing its thirteenth sustainable bond, a private placement under its Sustainable Development Finance Framework, to three investors. The SEK 750 million note was led by Skandia, supporting IFAD for the third time, alongside two new investors, AP3 and Kammarkollegiet.
The proceeds from the bond will finance IFAD’s development projects worldwide, with a focus on transforming rural areas to enhance productivity and prosperity. These initiatives aim to improve livelihoods, food security, and resilience for millions of rural residents. Natalia Toschi, IFAD’s Head of Funding, highlighted the importance of long-term partnerships with repeat and new investors, emphasizing ESG-focused investment strategies.
Alexander Onica, Head of Skandia’s Fixed Income and Currency Management, noted that investing in IFAD supports sustainable development while combining social impact with financial stability. He emphasized the critical role of small-scale farmers in global food security and poverty reduction, as well as the broader societal benefits of such investments.
IFAD’s programs help small-scale farmers improve agricultural practices, strengthen resilience to shocks, and access markets, technologies, and value chains. These efforts have proven effective, increasing farmers’ production, income, and market access by over one third. Between 2022 and 2024, IFAD-funded projects also generated nearly 390,000 jobs, contributing to economic growth and stability.
Skandia, founded in 1855, is a leading Swedish insurance company, while AP3 is a national pension system investor in Sweden advocating responsible investments. Kammarkollegiet, a Swedish state authority under the Ministry of Finance, focuses on strengthening democracy, transparency, and sustainable development.
Globally, approximately three billion people live in rural areas, with small-scale farmers producing half of the world’s food. Nearly 80 percent of the poorest populations reside in these areas, making strategic investments in early-stage food systems essential for delivering strong economic and social returns.
These sustainable investments underscore IFAD’s ongoing commitment to supporting rural communities, boosting food security, and fostering long-term development outcomes worldwide.
