Mandate

Vinge advises Region Uppsala in connection with health impact bonds

December 14, 2023 Banking and Finance

Vinge has advised Region Uppsala in connection with its issuance of a so-called health impact bond in the amount of SEK 80 million and with a tenor of five years. The health impact bond is the second of its kind in the world and comes after Region Stockholm’s bond which was linked to preventive measures against type 2 diabetes. Skandia was the sole investor and SEB acted as financial advisor and issuing agent.

The health impact bond is a bespoke product that finances preventive interventions to detect and offer potentially life-saving treatment to people with undiagnosed high blood pressure and other related risk factors. The preventive interventions are expected to prevent up to 650 materially adverse cardiovascular events and generate cost savings of approximately SEK 160 million over ten years.

A distinct and unique feature of the health impact bond is its yield model, which is outcome-based and involves risk sharing between the issuer and the investor. If the issuer’s initiatives achieve the expected results, the investor will receive a higher return on its investment, but if the issuer does not achieve the expected results, the return will be lower or even negative (i.e., the investor will get back less than their invested amount).

For more information (Swedish only), please refer to https://regionuppsala.se/politik-och-paverkan/pressrum/2023/december/satsar-stort-mot-hogt-blodtryck-genom-att-ge-ut-halsoobligation/.

The Vinge team consisted of Albert Wållgren, Lionardo Ojeda and Sofia Haggren.

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