The BIS announces a new open investment fund

The Bank for International Settlements indicated that this second asset will be denominated in euros, unlike the first, which was in dollars

The Bank for International Settlements (BIS) announced a second open investment fund focused on green bonds for central banks and other official institutions, the entity said in a statement.

This second fund will be denominated in euros, while the first was denominated in dollars. Together, both funds will manage $ 2 billion in green bonds, although the BIS estimate is that this amount “will continue to grow considerably.”

The BIS noted that both funds have been developed with the “support” of an advisory committee made up of staff from other central banks. These funds are part of the entity’s strategy to help central banks incorporate environmental sustainability objectives into their reserve and capital management.

“The funds promote green finance through considerable investments in environmentally friendly projects such as renewable energy production and energy efficiency and support the adoption of best practices and market standards to deepen the green bond market,” said the Bank.

Bonds eligible for the BIS fund must have a minimum rating of A- and comply with the ‘Green Bond Principles’ of the International Capital Market Association and / or the Climate Bonds Standard published by the Climate Bonds Initiative.

K. Tovar

Source: dpa

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