Loans to the Norwegian municipalities and regional governments.
KLP provides financing to local governments (Municipalities and Counties). These are loans specifically aimed at physical projects (No budget financing) i.e. building and renovation of schools, roads, health institution, renovation plants. The loans are either directly to local governments or entities guaranteed by local governments. Norwegian local governments are protected by the State of Norway, and by law, cannot go bankrupt. Under solvency II - local governments are rated AA.