Amundi and IFC launch $2bn EM green bond fund

Added 21st April 2017

Amundi has joined forces with the International Finance Corporation to launch the world’s largest green bond fund dedicated to emerging markets.

Amundi and IFC launch $2bn EM green bond fund

Called the Green Cornerstone Bond Fund, its objective is to develop green finance in emerging markets, buying green bonds issued in Africa, Asia, the Middle East, Eastern Europe and Central Asia.

The IFC has committed to investing up to $325m in the new green fund, while Amundi has confirmed it will raise over $2bn from institutional investors worldwide.

Thus far, the IFC has issued green bonds totalling $5.8bn in 12 different currencies. This latest green bond fund will bring the investment manager one step closer to increasing its own climate investments to 28% by 2020.

The fund will initially target emerging market countries and banks that have a higher potential to issue green bonds, with the goal of being fully invested in green bonds within seven years.

“This green-bond fund will lower the risk for the private sector and attract new investors – essentially creating a market where there was none,” said IFC CEO Philippe Le Houérou.

“We’ve already identified dozens of banks in many developing countries around the world that could be interested in this fund. It’s a win-win—supporting the green economy and deepening access to international markets for emerging market issuers.”

In an effort to lower risk and mobilize private sector financing, IFC has agreed to provide first-loss coverage so that the fund can operate in the more challenging, conflict-torn economies.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Investment Trusts 2017
PA Investment Trusts 2017

Tuesday 20 June
Furniture Makers' Hall

PA Income 2017
PA Income 2017

Tuesday 4 July
Radisson Blu Edwardian Bloomsbury Street Hotel 

OTHER STORIES FROM LAST WORD...