SWEDEN - The SEK15bn Sixth Swedish National Pension Fund (Sjätte AP-fonden, AP6) has launched a convertible bond instrument designed to make external funding more attainable to small and medium-sized Swedish growth companies.
The instrument has been created with the general age increase of Swedish company owners in mind, based on the idea that those owners will be seeking to sell their companies on to the next generation in the near future.
A spokesman for the fund said the bond was aimed at companies with a turnover of less than SEK500m.
“It is especially relevant in cases where the ownership of those companies is changing,” he said. “There are quite a lot of companies in this country that are now coming up for sale because the owners are getting too old.”
The lowest amount at which the bond can be issued or bought is SEK10m.
AP6 has a government-appointed role to contribute to the development of Swedish business by investing in small and medium-sized companies through a selection of private equity funds. It also directly owns shares in a limited number of growth companies.
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