The International Fund for Agricultural Development (IFAD) began 2026 by issuing its thirteenth sustainable bond under its Sustainable Development Finance Framework. The SEK 750 million private placement was acquired by three investors: Skandia, the lead investor supporting IFAD for the third time, and two new investors, AP3 and Kammarkollegiet.
The proceeds from the bond will fund IFAD’s global development projects aimed at transforming rural areas to enhance productivity, prosperity, and resilience. These initiatives focus on improving livelihoods, food security, and economic stability for millions of rural people. Natalia Toschi, IFAD’s Head of Funding, emphasized that the deal reflects IFAD’s goal of building long-term partnerships while attracting new investors with an ESG-driven strategy.
Skandia highlighted the social and financial impact of the investment, noting the importance of supporting small-scale farmers who play a crucial role in global food security. IFAD invests in these farmers to improve agricultural practices, build resilience, and connect them to markets, technologies, and value chains. This approach has demonstrated measurable results, with recent analysis showing that IFAD projects increased farmers’ production, income, and market access by more than one third, while creating nearly 390,000 jobs between 2022 and 2024.
Skandia, AP3, and Kammarkollegiet are each prominent Swedish institutions. Skandia is a leading insurance company, AP3 is a national pension fund with a focus on responsible investments, and Kammarkollegiet is a government agency working to strengthen transparency and sustainability in public administration.
With roughly 3 billion people living in rural areas of developing countries and small-scale farmers producing half of the world’s food, IFAD emphasizes that strategic investments in the first mile of food systems yield significant social and economic returns, contributing to poverty reduction, rural development, and global food security.
