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AIIB & Amundi Launch Innovative USD 500 Million Climate Bond Portfolio to Mobilize Climate Action

Infra News - Published on Thu, 12 Sep 2019

Image Source: Financial_Investigator
The Asian Infrastructure Investment Bank and Amundi, Europe’s largest asset manager, announced a USD 500 million Asia Climate Bond Portfolio which aims to accelerate climate action in the Bank’s members and address the underdevelopment of the climate bond market. Through a managed fixed income portfolio of an initial USD 500 million, the joint project expects to mobilize another USD 500 million from climate change-focused institutional investors. A portion of the investment proceeds will be allocated to market education, engagement and issuer support. Amundi and AIIB have developed a first-of-its-kind Climate Change Investment framework, which takes into account three variables, portion of green business activities, climate mitigation and resilience to climate change, to analyze issuers’ ability to cope with climate change. The Asia Climate Bond Portfolio will invest in labeled green bonds and unlabeled climate bonds and engage with issuing companies to help them transition their business models to increase climate resilience and green leadership. The portfolio will seek performance by identifying, analyzing and selecting tomorrow’s climate champions based on this framework.

Mr DJ Pandian, AIIB Vice President and Chief Investment Officer, said that “This portfolio is another example of how AIIB works with leading partners to develop innovative financial products to deepen capital markets for infrastructure. We expect this investment will demonstrate how international financial institutions can approach development finance differently to support the Paris Agreement and adoption of climate finance principles.”

Mr Yves Perrier CEO of Amundi said that “We are honored to work with AIIB on their first capital market initiative focused on climate action. Supporting Climate Champions and the Paris Agreement in Asia is in line with Amundi’s commitment to ESG investing and reflects our extensive commitment to the region. We are proud to launch this new initiative in the field of climate finance.”

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Posted By : Ratan Singh on Thu, 12 Sep 2019
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