The International Finance Corporation (IFC) today launched a US$200 million AAA Green Bond offering, ring-fenced to fund IFC climate change related programs.
The bond follows the footsteps of its sister institution, the World Bank. The World Bank has raised over $1 billion in Green Bonds in recet years.
A day after launching a 600m Swedish Kroner Green Bond, the World Bank has launched another 10 new Green Bonds denominated in different currencies.
The 10 bonds are primarily for the new, open-ended, Nikko World Bank Green Bond fund, previously reported.
A few weeks ago we told you about Nikko Asset Management’s new World Bank green bonds fund for Japanese investors. They’ve now created a Luxembourg fund aimed at European and Middle Eastern investors. It will be available in £, US$ and Euro share classes.
The fund - the first of its kind - can invest up to 100% of its portfolio in green bonds issued by the World Bank, with funds ring-fenced for World Bank funded climate change projects such as energy efficiency, renewable energy and reforestation.
What's unusual about this fund is that Nikko AM say they've developed the fund in cooperation with the World Bank, and they only invest in World Bank Green Funds, offered in a variety of currencies.
An interesting niche; they are confident of investor support within Japan. Worth noting that the country has already soaked up a series of World Bank Green Bond offerings.
The World Bank has just done another NZD 75mm Green Bond, tailored for individual (retail) investors in Japan. They are billing them as "An innovative way for Japanese investors to help combat climate change through a high
quality bond investment". The lead manager is Daiwa.
