Tag: ESG
Development bank hopes information will eventually help with better pricing for greener issuers Development bank hopes information will eventually help with better pricing for greener issuers Development bank hopes information will eventually help with better pricing for greener issuers
The Asian Infrastructure Investment Bank (AIIB) is working with Amundi to measure the Paris-alignment of bond issuers, in a bid to encourage a lower cost of capital for greener companies and encourage climate-related disclosure.
The framework is expected to be endorsed by influential NGO Climate Bonds Initiative (CBI), and will be released for general market usage in September.
As a starting point, the framework will be used to define the investable universe of AIIB’s Asian Climate Bond Portfolio, a recently-launched $500m (€450m) strategy – managed by Amundi – which aims to invest in regional climate leaders.
AIIB is a development bank set up in 2016 to serve Asia and Oceana. It currently has 78 member countries, and is focused on infrastructure investment.
The framework will comprise three categories: ‘A’ ratings for “climate champions”, ‘B’ ratings for those well positioned for a low-carbon transition, and ‘unrated’ - referring to issue…