Kommuninvest I Sverige AB, which sells AAA-rated debt on behalf of Sweden’s local governments, started lending money to projects that will ultimately back social bonds. Issuance will start once the portfolio is big enough, Bjorn Bergstrand, the head of sustainability at the lender, said in an interview.

The development would provide an important platform for a category of sustainable debt that’s only just starting to take off. Issuers and investors have so far focused on the E in ESG, when looking for environmental, social and governance goals to support.