EIB backs world’s first emerging market green bond fund with USD 100 million investment
- Release date: 16 March 2018
- Reference: 2018-066-EN
- The EIB invests USD 100 million in the “Amundi Planet – Emerging Green One” Fund.
- Strengthens first emerging markets-focused green bond fund with a total investor commitment of USD 1.4 billion.
EIB Vice-President Ambroise Fayolle today announced that the European Investment Bank (EIB) – the world’s largest multilateral financier of climate-related investment – would provide USD 100 million to strengthen sustainable investment in emerging markets through green bonds. The EIB will be one of the largest investors in the “Amundi Planet – Emerging Green One” Fund. In addition to its investment, the EIB will contribute its know-how, built on its experience in issuing over EUR 20bn of green bonds as the initiator of the market, and still one of the largest issuers globally.
“The EIB is very proud to become a cornerstone investor in the first emerging market green bond fund” commented EIB Vice-President Ambroise Fayolle. “This exciting new initiative will transform sustainable investment in countries that are the most vulnerable to climate change, and enable local financial institutions to issue green bonds. Through its investment, the EIB will help accelerate emerging markets towards a green economy, while supporting growth and employment. The EU bank remains committed to mobilising private investors and financing projects to deliver on the Sustainable Development Goals (SDGs) and the Paris COP 21 climate agreement.”
The Fund is the first dedicated exclusively to emerging market green bonds issued by the private sector. It aims to encourage more local financial institutions to issue green bonds by increasing global demand, and building local markets. It is part of the Green Cornerstone Bond Fund, which is the result of fruitful collaboration between the International Finance Corporation (IFC), Amundi Asset Management, a leading European asset manager, the EBRD and Proparco.
The EIB, the world’s largest multilateral provider of climate finance
This strong EIB commitment to stimulating the growth of green bonds in emerging markets reflects the EIB’s broader commitment as the leading and largest multilateral provider of climate finance worldwide. The EIB has committed at least 35% of its total financing to support climate change mitigation and adaptation, supporting low-carbon and climate-resilient growth outside the EU.
The EIB is the world’s largest supranational bond issuer, and issues green bonds to finance a significant proportion of its renewable energy and energy-efficiency lending, alongside its regular bond issuances. Over the last 10 years, the EIB has reinforced its leading position in the green bond market through continued issuance. Since January 2017, the Bank has issued the equivalent of EUR 4.3bn in Climate Awareness Bond (CAB) format through 14 transactions across five currencies.
The European Investment Bank exceeded its climate action target for the eighth year running, providing over EUR 19.6 billion to fight climate change in 2017, i.e. over 28% of all EIB financing. In support of the Paris Agreement, EIB committed to deliver around USD 100 billion of climate finance globally in the five-year period to 2020.