The Bank for International Settlements (#BIS) has launched its second open-ended investment in green bonds to encourage central banks and official institutions.
The aim of the launch is to foster environmental #sustainability and adoption of best market practices in response to the current and future demand for environment-friendly investments.
The introduction of the first BIS green bond fund was a success prior to the second launch, and together both the green bonds promise about $2 billion of green bonds for central banks. The BIS has offerings for around 140 central banks, international organizations, and monetary authorities.
In order to be eligible for the BIS fund, the bonds require abiding by the International Capital Market Association’s #Green Bond Principles, a minimum rating of A-, and/or the Climate Bond Standard published by the Climate Bonds Initiative.
An advisory committee from a global group of central banks are associated with the development of both the funds and are a part of BIS’s green bond initiative to support responsible investment and finance practices that are aligned with its participation in the Network for Greening the Financial System.
In a statement, Peter Zöllner, Head of BIS Banking Department, talked about the support from central banks around the globe in the joint green bond fund initiative through the BIS.
