The European Bank for Reconstruction and Development (EBRD) intends to invest up to $100 million in Amundi Planet – Emerging Green One.
Amundi Planet – Emerging Green One was set up by Amundi, a European asset manager, in partnership with World Bank Group’s International Finance Corporation.
It is the first fund focusing on investing in green bonds issued by private sector financial institutions.
Now EBRD plans to invest up to 5% of the fixed-income fund, and has to date already raised over $1.2 billion of committed investor interest.
The fund will work to allocate a multiple of at least three times the Bank’s investment to the EBRD’s countries of operations as part of the fund’s regional diversification policy.
The targets for the greening of the overall portfolio will also apply at the same rate to the amount allocated to the regions. Read more…
Yves Perrier, CEO of Amundi, said: “Jointly we will help to increase both demand for and supply of green bonds in emerging markets.”
Global Green Bond Markets
According to an organisation promoting investments in low-carbon and climate resilience assets, the Climate Bonds Initiative, the global market for green bonds has grown rapidly in recent years and exceeded $100 billion of issuance in 2017.
Large regional gaps exist, however: few private sector companies and financial institutions have issued green bonds in the regions that EBRD operates, which include central, eastern and south-eastern Europe; Central Asia; and the southern and eastern Mediterranean.
Through its participation in the fund, the financier will work to establish harmonised best practices for emerging market green bond issuances in line with the Green Bond Principles, the market reference developed by a broad forum of market participants.
The financier’s president, Sir Suma Chakrabarti said: “With around $500 million worth of issuance by private sector financial institutions to date, green capital markets in the EBRD’s countries of operations are still in a nascent stage.
“This new fund is expected to contribute to significantly increasing the availability of green finance in the regions, raising awareness among domestic investors for green capital market products and supporting local financial institutions in issuing green bonds in line with the Green Bond Principles.”