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Big pension funds invest in new World Bank green bond issue

UN pension fund makes second investment.

The California State Teachers’ Retirement System (CalSTRS), the United Nations Joint Staff Pension Fund, Sweden’s AP2 and AP3 pensions buffer funds and SEB Trygg Liv, the Swedish insurer, have all invested in the latest World Bank green bond issuance, which raised $130m (€87m) to support low-carbon development in developing countries. The issue was lead by SEB and co-managed by Credit Suisse. It follows similar green bond issuances by the World Bank in November 2008 and April 2009 and takes the total amount raised to almost $800m. Christina Kusoffsky Hillesoy, head of communication and sustainable investments at AP3, said: “The green projects supported by the World Bank green bond are an important step in that direction. Forus as long-term investors, it is important to find responsible investments targeted at the global climate challenges.” Warren Evans, director of the World Bank’s environment department, said: “We’re pleased to see continued investor support to what the World Bank is carrying out in conjunction with our country partners. It’s an indication that investors fully understand the inextricable link between development and climate change.”
The United Nations Joint Staff Pension Fund also participated in the inaugural World Bank green bond last year. The latest bond, denominated in US dollars and listed in Luxembourg, matures in December, 2013 and pays a coupon of 2% per annum.