Wed, Aug 10, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

BIS launches Asian Green Bond Fund

Friday, February 25, 2022
Opalesque Industry Update - The Bank for International Settlements (BIS) today launched a new green bond fund dedicated to help finance investments in green projects in the Asia and Pacific region.

The Asian Green Bond Fund joins two other green bond funds issued by the BIS since 2019. Together, the funds will manage some $3.5 billion in green bonds for central banks and other official sector investors, with the expectation that the funds will continue to grow as reserve managers' sustainable investment practices evolve.

The new fund offers central banks, both in Asia and beyond, opportunities to invest in high-quality bonds issued by sovereigns, international financial institutions, and corporates that comply with strict international green standards. These bonds help finance environmentally friendly projects in areas such as renewable energy production and energy efficiency in the Asia and Pacific region.

The BIS Asian Green Fund is a US dollar-denominated, open-ended fund and was developed under the guidance of the BIS Asian Consultative Council and in close collaboration with the Asian Development Bank, the broader development financing community and other stakeholders.

Peter Zoellner, Head of the BIS Banking Department, said: "The Asian Green Bond Fund is a strong and welcome addition to the two existing green bonds funds at the BIS. Coming on the heels of COP26, it demonstrates once again the steadfast commitment of the BIS to provide a much needed and secure vehicle for global central banks in their efforts to support environmentally friendly investments."

Siddharth Tiwari, Chief Representative of the BIS for Asia and the Pacific region, said: "Partnership is key in our combat against climate change, particularly in a region as vulnerable to climate change as Asia. The BIS can play a role as catalyst in bringing the central banking and development communities together in support of our global effort. Asia is the right place to start this collaboration."

Bruno Carrasco, Director General of the Asian Development Bank's Sustainable Development and Climate Change Department, said: "As the Climate Finance Bank of Asia and the Pacific, we welcome the launch of the BIS Asian Green Bond Fund to help channel financing for investments in critical areas such as renewable energy production and energy efficiency."

BIS green bond funds belong to the BIS Investment Pool (BISIP) family, a format commonly used by BIS Asset Management for its fixed income investment products. They are managed in-house by BIS Asset Management. Bonds eligible for the new Asian green bond fund have a minimum average rating of A- and comply with the International Capital Market Association's Green Bond Principles and/or the Climate Bond Standard published by the Climate Bonds Initiative.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du