By Tom Young, BusinessGreen, Monday 22 February 2010 at 12:03:00
Bond issues raise finance for low-carbon and climate adaptation projects in developing world
The latest issue of green bonds by the World Bank has taken the total amount raised to more than $1bn (£646m), the institution announced today.
The innovative bonds were first issued in late 2008, raising $350m and marking the first time the World Bank had offered bonds to raise funds for a specific purpose.
The bonds were developed in partnership with Swedish bank Skandinaviska Enskilda Banken (SEB), which confirmed that the most recent issue of SEK500,000,000 ($69.2m, £44.7m) helped take the total sold past the $1bn mark.
The bonds are used to raise money to support World Bank-funded projects that tackle the causes and consequences of climate change in the developing world, such as renewable energy installations, reforestry initiatives, watershed management and flood protection schemes.
"Climate action in developing countries – specifically, mitigation and adaptation initiatives – requires important financing by the international community, from both public and private sources," said Warren Evans, director of the environment department at the World Bank.
The latest issue of bonds saw investment from WWF-Sweden and the Swedish National Pension Fund, as well as a number of European private banks and life insurance companies.
The bonds will mature after seven years and promise return at rates of 3.25 per cent per annum – higher than Swedish government bond rates. …
World Bank's green bonds clear $1bn mark
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