Bank for International Settlements Launches Green Bond Fund
Bank for International Settlements Launches Green Bond Fund
(Bloomberg) -- The Bank for International Settlements started an open-ended fund for central bank investments in green bonds, it said in a statement.
The institution, which is often referred to as the central bankers’ central bank, said the fund comes in response to growing demand for climate-friendly investments. It should also help institutions incorporate sustainability objectives into the management of their reserves.
“We are confident that, by aggregating the investment power of central banks, we can influence the behavior of market participants and have some impact on how green investment standards develop,” said Peter Zoellner, head of the BIS banking department.
As a member of the Network for Greening the Financial System -- a group of supervisors and central banks -- the BIS is working to support sustainable finance and investment, it said. The International Monetary Fund said in a statement Thursday that it will also join the group as an observer.
The Bank of Spain, which joined the NGFS in 2018, said in a statement that it will participate in the BIS fund. Bonds must have at least an A- rating and comply with certain green bond standards to be eligible.
--With assistance from Jeannette Neumann.
To contact the reporter on this story: Jill Ward in London at jward98@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint
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