The Bank for International Settlements (BIS) has announced the launch of a new euro-denominated, open-ended green bond fund, which will see the Switzerland-based central banking body’s investments in green bonds grow to $2bn.
The move builds on the creation of a similar, US dollar-denominated green bond fund by BIS, which provides financial services to around 140 central banks, monetary authorities and international organisations globally. That fund was unveiled in 2019 and hit $1bn last summer. It is unclear how much of the $2bn target is attributed to each fund, but BIS said both vehicles are expected to continue to “grow considerably”.
The European Central Bank (ECB) is one of the first to invest in the new euro-denominated fund, announcing that it will invest part of its “own funds portfolio”. The central banks of Spain and Portugal announced on Twitter that they have also participated in the new fund.
Last year, the ECB replaced its …